Health IT and RCM sectors saw 66 M&A deals in first half of 2017: 7 takeaways

Greenberg Advisors, a revenue cycle management and health IT-focused investment bank, released its M&A Update analyzing deal activity in the RCM, health IT and accounts receivable management sectors for the first half of 2017.

Here are seven takeaways.

RCM and health IT

1. GA reported more than $14.7 billion in deal value across 66 deals within health IT and RCM in the first half of 2017. This is similar to the 67 deals in the first half of 2016.

2. Among the biggest deals from the first half of 2017 were the merger of McKesson and Change Healthcare, as well as Blackstone's acquisition of TeamHealth Holdings.

3. Thirty percent of the health IT and RCM transactions in the first half of 2017 exceeded $50 million, compared to 18 percent in the second half of last year.

4. Buyers in 30 percent of health IT and RCM deals in the first half of this year were backed by private equity or venture capital firms, according to GA. This compares with the 10 percent of health IT and RCM deals backed by such firms in all of 2016.

5. GA said 28 companies are repeat buyers within health IT and RCM since Jan. 1, 2016.

ARM

6. GA reported 25 completed ARM transactions totaling $4.4 billion across multiple industries in the first six months of this year. That's up from 12 deals totaling $1.3 billion in the second half of 2016 and 20 deals totaling $2.6 billion in the first half of last year.

7. Nearly half of ARM sellers (48 percent) operated within the healthcare receivables market in the first half of 2017.

Read the full report here.

 

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