Healthcare M&A update: H2 2023

Navigating uncertainty: Insights from the healthcare M&A landscape

The following report developed by Baker Tilly Capital, LLC provides an update on the healthcare mergers and acquisitions (M&A) market in the second half of 2023 (H2 2023). The report includes an overview of the market performance, M&A activity, transactions by segment and buyer, and U.S. middle market M&A activity. 

The second half of 2023 in healthcare M&A was a journey through uncertainty, marked by a blend of optimism and caution as the industry continued its recovery from the throes of the COVID-19 pandemic. 

Here are some key takeaways from the report:

• U.S. hospitals and health systems rebounded in H2 2023, with margins improving and a shift towards capital planning 
• BT Capital HC Index outperformed iShares U.S. Healthcare Providers Index but lagged behind tech-driven S&P 500 
• Physician services consolidation dominated via bolt-on deals by private equity platforms 
• Economic uncertainty, coupled with factors like borrowing costs and the impending presidential election, cast a shadow over the healthcare M&A landscape as it entered 2024 
• Healthcare services companies emerged as the most sought-after targets for buyers in H2 2023, comprising the majority of closed deals 

Get the pulse of the industry

For an in-depth look at M&A activity in the healthcare industry, download a copy of our healthcare M&A update: H2 2023. The report includes:

• Financial performance of specific healthcare sectors
• Major U.S. indexes performances
• Potential pricing regulation
• Notable transactions closed during H2