For the study, titled Healthcare & Life Sciences M&A Outlook, the law firm commissioned Mergermarket to interview 50 corporate and private equity respondents from the healthcare and life sciences sectors.
More than 85 percent of the survey respondents said they expect mergers and acquisition activity to increase in healthcare and life sciences in the coming year. Eighty-four percent of the respondents said they expect private equity activity to increase in relation to strategic mergers and acquisitions.
Companies are looking to consolidate to build infrastructure, get access to new technology and increase market share, and rising demand for facility and equipment improvement was cited as the top strategic driver for mergers and acquisitions by 46 percent of survey respondents.
“Consolidation is driven by a desire to achieve economies of scale and enhanced bargaining power,” said Leigh Walton, an attorney at Bass, Berry & Sims, in the study. “The Affordable Care Act’s roll out has accelerated this trend as the law demands accountable care and cutting edge technology at lower reimbursement rates.”
More Articles on Consolidation:
Integrated Chaos: Health Systems and the Aftermath of Defensive Physician Acquisitions
Commonwealth Fund: 8 Strategies to Prevent Price Hikes From Provider Consolidation
Key Issues in Mergers and Acquisitions: Is Ownership a Downward Trend?
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.