ARTICLE
15 January 2025

Healthcare Trends & Transactions: 2024 Year In Review

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Bass, Berry & Sims

Contributor

Bass, Berry & Sims is a national law firm with nearly 350 attorneys dedicated to delivering exceptional service to numerous publicly traded companies and Fortune 500 businesses in significant litigation and investigations, complex business transactions, and international regulatory matters. For more than 100 years, our people have served as true partners to clients, working seamlessly across substantive practice disciplines, industries and geographies to deliver highly-effective legal advice and innovative, business-focused solutions. For more information, visit www.bassberry.com.
As we reflect on the healthcare mergers and acquisitions (M&A) landscape in 2024, the year has been defined by a mix of steady activity, persistent challenges, and evolving dynamics. Early in the year,
United States Food, Drugs, Healthcare, Life Sciences

As we reflect on the healthcare mergers and acquisitions (M&A) landscape in 2024, the year has been defined by a mix of steady activity, persistent challenges, and evolving dynamics. Early in the year, while healthcare M&A activity in sectors like physician practice management (PPM) and hospitals showed slight growth compared to late 2023, overall industry-wide deal volumes remained stagnant. With interest rates remaining high and continued scrutiny on the role of private equity (PE) in healthcare, from the Biden administration and state regulators alike, 2024 was generally expected to be a continuation of 2023 in terms of deal volumes. Despite this, investors remained eager to deploy capital, driven by the prospect of a shifting political and regulatory climate, particularly as the presidential election loomed.

By Q2, the healthcare M&A market appeared to have steadied, with many buyers adapting to the new interest rate environment. PE investors, in particular, pressed on with their efforts to deploy the capital they had raised, even as they faced headwinds. The market's resilience continued into Q3, where several key developments—such as the Federal Reserve's long-awaited rate cuts and the courts' rejection of the Federal Trade Commission's (FTC) national ban on non-competes—provided reasons for optimism. Looking back at the year as a whole, deal volumes were strong, especially when compared with pre-COVID-19 numbers. According to the yearly PwC report published in mid-December, although the number of healthcare transactions through November 15 declined by 9% from 2023 levels, annual deal volume through November 15 was nearly 70% higher than the pre-COVID-19 trendline.

The year's performance highlighted both challenges and potential for growth as healthcare M&A continued to evolve amidst political, regulatory, and economic shifts. In the tenth annual edition of Healthcare Trends & Transactions: Year in Review, we highlight several notable transactions—and trends—in each of the following healthcare sectors:

  • Physician practice management
  • Clinical research organizations
  • Ambulatory surgery centers
  • Hospitals & health systems
  • Home health, hospice care & personal care services
  • Digital health & health information technology
  • Behavioral health
  • Managed care
  • Pharma services, pharmacy & pharmacy benefit managers

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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