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PwC: Healthcare deal volume decreased 18% since Q1 2017

The U.S. health services industry witnessed more than 200 deals during the second quarter of 2017, according to a July 27 report by PricewaterhouseCoopers.

For the report, PwC defined U.S. mergers and acquisitions activity as "mergers, acquisitions shareholder spin-offs, capital infusions, consolidations and restructurings where acquisition targets are U.S.-based companies acquired by U.S. or foreign acquirers."

Here are six insights from the PwC report.

1. While announced deal volumes decreased slightly during the second quarter, deal values totaled roughly $49.6 billion. This represents a 201 percent increase from the second quarter of 2016 and 514 percent increase from the first quarter of 2017.

2. Two-hundred and nineteen deals took place during the second quarter. The figure represents a 15 percent decrease in deal volume compared to the second quarter of 2016, and an 18 percent decline in deal volume compared to the first quarter of 2017.

3. Ten "megadeals" — deals exceeding more than $1 billion in value — took place during the second quarter. The megadeals accounted for $43.3 billion in deal value or 87 percent of the total deal volume for the second quarter.

4. The most active subsector of the health services industry, in terms of deal volume, was long-term care. The sector witnessed 75 deals, which accounted for 34 percent of the total number of deals during the second quarter, the report states.

5. Both the managed care and home healthcare subsectors saw a 100 percent decline in terms of deal value. The report notes the subsectors did not have any transactions with disclosed deal values during the second quarter.

6. Analysts concluded there were no initial public offerings in the health services sector during the second quarter. Two IPOs took place in both 2015 and 2016, down from six in 2014.

To view the report, click here.

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