Value of healthcare deals drops 16% in Q3: PwC

The third quarter of this year marked the 12th straight quarter U.S. healthcare services saw 200-plus deals; however, deal values and volumes fell compared to the third quarter of 2016, according to a PwC report.

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For the analysis, PwC analysts defined merger and acquisition activity as mergers, acquisitions, shareholder spinoffs, capital infusions, consolidations and restructurings involving U.S.-based companies acquired by U.S. or foreign entities.

Here are four additional findings from the report.

1. Healthcare deal values totaled $17.4 billion in the third quarter of this year, down 16 percent from the same period last year.

2. Healthcare deal volumes totaled 211 in the third quarter of 2017, marking an 11 percent decrease from the third quarter of 2016.

3. The third quarter saw six megadeals exceeding $1 billion, for a total of $11.4 billion. This is a significant decrease from the second quarter of this year, although PwC analysts note that was an exceptional quarter. 

4. The only subsectors witnessing deal volume growth on a quarterly and yearly basis were behavioral care and managed care. Physician medical group deals grew the most among subsectors in terms of value. 

More articles on transactions and valuations:
Report: Hospital M&A slows in Q3; few larger mergers expected for Q4
Dignity Health, Select Medical sign definitive agreement to combine select operations
9 recent hospital transactions and partnerships

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