Oct 26, 2017

The steady pace of health care deals

Health care mergers and acquisitions slowed a bit over the summer, but the industry still has kept bankers and consultants busy since the Affordable Care Act went into effect. The health care industry has initiated more than 200 deals per quarter for 12 straight quarters, including 211 in the third quarter of 2017, according to a report from PwC.

Expand chart
Reproduced from PwC Q3 2017 health services deals report; Data: healthcareMandA.com

The value of all the health care transactions in the third quarter was about $17.4 billion, led by the $3.75 billion deal between health insurers Centene and Fidelis Care. That total was down from almost $50 billion in the second quarter, an anomaly that had a slew of large-scale buyouts such as the $9 billion minority stake selloff of drug research firm PPD.

  • A third of the health care deals in the third quarter involved long-term-care facilities, like nursing homes.
  • Buyers are paying more for most health care companies, especially labs and imaging centers.
  • Many other mergers were initiated in the third quarter but did not have disclosed deal values.
  • Thad Kresho, who tracks health care deals for PwC, expects even more transactions by the end of the year, partially due to increasing interest by private equity investors.

Go deeper

Biden formally secures Democratic presidential nomination

Joe Biden speaks at Delaware State University's student cente on June 5. Photo: Jim Watson/AFP via Getty Images

Former Vice President Joe Biden became the formal Democratic presidential nominee on Friday evening, per AP.

The big picture: Biden has been the presumptive frontrunner to take on President Trump since Sen. Bernie Sanders suspended his campaign in early April.

Updated 7 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 6,724.516 — Total deaths: 394,018 — Total recoveries — 2,996,832Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 1,894,753 — Total deaths: 109,042 — Total recoveries: 491,706 — Total tested: 19,231,444Map.
  3. Public health: WHCA president says White House violated social-distancing guidelines to make reporters "a prop" — Jailing practices contribute to spread.
  4. Sports: How coronavirus could reshuffle the sports calendar.
  5. Jobs: Better-than-expected jobs report boosts stock market.
  6. Media: The Athletic lays off 8% of staff, implements company-wide pay cut.

Scoop: German foreign minister to travel to Israel with warning on annexation

Heiko Maas. Photo: Michael Kappeler/picture alliance via Getty Images

German Foreign Minister Heiko Maas is expected to travel to Israel next week to warn that there will be consequences if Israeli leaders move forward with plans to annex parts of the West Bank, Israeli officials and European diplomats tell me.

Why it matters: Israeli and European officials agree that if Israel goes ahead with unilateral annexation, the EU will respond with sanctions.