Irving Levin Associates has released summary data on health care M&A activity during 2012. Deal volume for hospitals showed an uptick of 2.2% over 2011 — 94 deals, up from 92 in 2011. However, dollar value of the deals declined 77.2%, from $8.3 billion in 2011 to $1.9 billion in 2012. In the health services market overall, the number of deals was up 8.9%, but total dollar value was down 31.5%.
Significant growth in deal dollar value was seen for the home health/hospice, physician medical groups, behavioral health, and managed care sectors. For the entire health sector – both technology [biotech, ehealth, devices, and pharma] and health services – the deal dollars shrank 38% while deal volume grew 5.9%.
Source: Health care M&A spending falls nearly 40% in 2012, lowest year on record since 2003, according to Irving Levin Associates, Inc. Business Wire, Jan. 21, 2013. http://www.businesswire.com/news/home/20130121005788/en/Health-Care-MA-Spending-Falls-40-2012.
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