Managed Care M&A Activity Slow to Recover From Great Recession

Activity in the managed care merger and acquisition market slowed greatly over the last five and a half years due to the Great Recession and uncertainty regarding federal healthcare reform, according to an Irving Levin Associates' report, "The Managed Care Acquisition Report, Second Edition, 2012."

According to the report, Jan. 1, 2007 to June 30, 2012, was the worst for the managed care sector in terms of dollar volume of transactions, with total dollar volume hitting a low of $856 million. In 2007, the dollar volume had reached almost $9 billion. The number of deals decreased 43 percent from 2007 to 2008, but the dollar volume during that period fell almost 78 percent.

Here is the number of transactions and the total dollar volume  for each year from 2007 to 2011:

• 2007 — 28 deals for $8.847 billion.
• 2008 — 16 deals for $1.982 billion.
• 2009 — 15 deals for $856 million.
• 2010 — 14 deals for $4.2 billion.
• 2011 — 20 deals for $7.9 billion.
• 2012 (first 6 months) — 11 deals for $1.2 billion.

More Articles on M&A Activity:

Healthcare M&A Deal, Dollar Volume Dives in 3Q
M&A Volume in Healthcare IT Market Rises 19% in 3Q
Healthcare IT Funding, M&A Strong in 3Q With 74 Deals Worth $3.4B

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