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Deals up 67% in behavioral segment

January 26, 2015
by Julie Miller, Editor in Chief
| Reprints

Across all of healthcare mergers and acquisitions were prevalent in the fourth quarter of 2014. Spending hit $138.3 billion, according to Health Care M&A News.

Behavioral healthcare saw five deals in Q4, which followed the four deals that were tracked in Q3, according to the report.

The Health Care M&A Market – Deal Volume by Sector

 

 

 

Q4:14

 

Q3:14

 

 

 

Q4:13

Sector

 

Deals

 

Deals

 

Change

 

Deals

 

Change

Services

                   

Behavioral Health Care

 

5

 

4

 

25%

 

3

 

67%

Home Health and Hospice

 

19

 

15

 

27%

 

18

 

6%

Hospitals

 

31

 

20

 

55%

 

17

 

82%

Laboratories, MRI and Dialysis

 

6

 

8

 

-25%

 

9

 

-33%

Long-Term Care

 

84

 

81

 

4%

 

65

 

29%

Managed Care

 

4

 

5

 

-20%

 

4

 

0%

Physician Medical Groups

 

16

 

14

 

14%

 

20

 

-20%

Rehabilitation

 

6

 

5

 

20%

 

7

 

-14%

Other

 

36

 

36

 

0%

 

15

 

140%

Services Subtotal

 

207

 

188

 

10%

 

158

 

31%

                   

 

Source: Health Care M&A News, January 2015

 

 “Uncertainty over the effects of the Affordable Care Act has been replaced by exuberance,” said Lisa E. Phillips, editor of Health Care M&A News, in a statement. “The cost of debt remained cheap and equity was easy to raise. As growth slowed in other countries, healthcare became an attractive target for U.S. investors.”

M&A activity is likely to keep booming in the first half of 2015 as health plans enrollment increases through the exchanges, which is good news for providers.

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