Sunday Feb 05, 2023

Healthcare Industry on Consolidation Spree

Healthcare Industry on Consolidation Spree

The healthcare sector offers a lot of promise for extended reality, a broad phrase that encompasses augmented reality, virtual reality, and mixed reality. AR and VR technology have the potential to significantly improve the healthcare sector, from assisting surgery to assisting telehealth applications.

Due to investor interest in virtual care and digital health, as well as the SPAC mania that is injecting a lot of money into the market, merger and acquisition activity in the healthcare sector reached a new high in 2021.

M&A activity in the healthcare sector has been more active than projected; by year’s end, over 3,000 transactions were anticipated. According to the legal firm Epstein Becker & Green, that is a rise of more than 25% from 2020.

Financial/investment analysts for the health sector at KPMG and FocalPoint Partners, a legal firm, had forecasted a record year for healthcare mergers in 2021, with many agreements expected to finalise by year’s end despite uncertainty about tax rate changes and high values in the current market.

There are fewer hospital consolidations but much larger deals,” Don McDaniel, CEO of Canton & Company and a healthcare economist, entrepreneur and advisory services leader, told Fierce Healthcare.

The $13 billion offer made by UnitedHealth Group for the tech firm Change Healthcare is one of the most closely watched transactions in the industry. The agreement, which was initially disclosed in January, drew criticism from groups like the American Hospital Association, which claims that it could result in a massive consolidation of healthcare data.

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