LTC mergers lead US healthcare deals in 2016

While overall healthcare mergers and acquisitions slowed slightly in 2016, activity was red-hot in certain sub-sectors, including long-term care and rehabilitation.

Long-term care deals led the pack among U.S. healthcare M&A activity by volume in 2016, for the second year in a row, according to PwC’s year-end report on U.S. Health Services Deals for 2016. The value of those transactions reached $14.4 billion, outpacing last year to become the highest sector in 2016 by deal value.

Overall, 2016 included fewer high-dollar transactions (those over $1 billion) compared to 2015, yet still retained the relative strength of the past few years. Rehabilitation was the fastest-growing sector in 2016 for deal volume, topping 21 percent of the overall healthcare M&A.

The deals prognosis for 2017 remains hazy, the report noted, due in part to insecurities over the possible Trump Administration approaches to the Affordable Care Act.

“Health Services M&A activity has been strong during the past several years with continued momentum being exhibited heading into 2017 across many sectors,” wrote U.S. Health Services Deals Leader Thad Kresho in the report. “However, attention should be paid to the evolution and implementation of the policies of the incoming administration as well as the outcome of the government's review of certain large mergers.”

One such mega-deal, the proposed merger of Aetna and Humana, was quoshed earlier this week by a US. District Court judge on antitrust grounds.

Pamela Tabar

Pamela Tabar was editor-in-chief of I Advance Senior Care from 2013-2018. She has worked as a writer and editor for healthcare business media since 1998, including as News Editor of Healthcare Informatics. She has a master’s degree in journalism from Kent State University and a master’s degree in English from the University of York, England.