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.

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.

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Health care profits dip, but stocks soar

Data: FactSet; Chart: Axios Visuals

Health care industry earnings fell 18% in the third quarter of this year, compared with the same period in 2018, due in part to the costs associated with opioids litigation, according to the Axios tracker of almost 170 health care companies.

Yes, but: The industry still churned out a 6.1% profit margin, and health care stocks are at the highest they've been all year because Wall Street foresees a very profitable election year.

Go deeperArrowDec 17, 2019

Medicare for All's missing mental health discussion

Illustration: Aïda Amer/Axios

America's mental health care system is in dire need of an overhaul, but the any real specifics are largely missing from the 2020 debate about health care.

Why it matters: Suicide and drug overdose rates continue to rise, and the U.S. faces a shortage of mental health providers and a lack of access to treatment.

Go deeperArrowJan 8, 2020

Hospitals say they want affordable care, but actions aren't clear

Illustration: Aïda Amer/Axios

Hospitals acknowledged to investors at this year's J.P. Morgan Healthcare Conference that their industry is contributing to patients' financial turmoil.

Yes, but: Hospitals reassured those same investors that they were focused on growing their revenue, with no real details about how that would save patients money.

Go deeperArrowJan 14, 2020