Here are 28 statistics to know on healthcare acquisitions:
Although 255 healthcare deals were announced in the second quarter of 2018, the value of deals decreased both compared to the first quarter and year over year, according to a PwC report. Here are statistics on health services deal volume and value:
2016
1. Third quarter deal value: $20.8 billion
2. Third quarter deal volume: 240
3. Fourth quarter deal value: $19.4 billion
4. Fourth quarter deal volume: 249
2017
5. First quarter deal value: $8.7 billion
6. First quarter deal volume: 277
7. Second quarter deal value: $50 billion
8. Second quarter deal volume: 233
9. Third quarter deal value: $17.7 billion
10. Third quarter deal volume: 259
11. Fourth quarter deal value: $100 billion
12. Fourth quarter deal volume: 249
2018
13. First quarter deal value: $72.6 billion
14. First quarter deal volume: 275
15. Second quarter deal value: $24.6 billion
16. Second quarter deal volume: 255
Of all recent or potential regulatory issues, the move from fee-for-service to bundled or value-based payments has the biggest impact on deal making, according to a West Monroe and Mergermarket report. Mergermarket surveyed 100 senior corporate and private equity executives from U.S. firms that had completed at least one healthcare deal in the past two years.
17. Move from fee-for-service to bundled/value-based payments: 19 percent
18. End of cost-sharing reduction payments to insurers: 18 percent
19. Repeal of the individual mandate: 16 percent
20. Possibility of new regulation to lower drug prices: 13 percent
21. Reduced Medicaid contributions to states: 13 percent
22. Uncertain future of the ACA: 11 percent
23. Reduced reimbursement on 340B qualified drugs: 10 percent
The top strategic driver of healthcare acquisitions for firms is consolidation or scaling up to increase competitiveness, according to a West Monroe report. Here is the percentage of firms that identified each strategy as a top driver of healthcare acquisitions. Firms selected the top two drivers.
24. Consolidation or scaling up to increase competitiveness: 58 percent
25. Opportunity to disrupt incumbents using technology: 48 percent
26. Expansion into new markets: 37 percent
27. Transformative acquisitions: 29 percent
28. Adding bolt-on assets to platform companies: 8 percent