First Quarter 2024 Healthcare M&A Results
Overview When we spoke to advisors and analysts in 2023, they all expected “more of the same” for the healthcare M&A market in 2024. None of the headwinds from 2023 were expected to be resolved this year, and especially not by the first quarter. In mid-March, the Federal Reserve (again) declined to adjust interest rates, remaining at 5.25% to 5.5%. The Biden Administration and Federal Regulators remain skeptical of private equity investments in the healthcare and senior care markets and pledged to continue reviewing their activity throughout the year, challenging deals and mergers. Labor shortages continue to pressure healthcare organizations and providers. Hospitals have been hit... Read More »
Elevance Health Q4 2023 Earnings Snapshot
Elevance Health announced its earnings and revenue for the fourth quarter of 2023 on January 24, 2024. The health insurer and healthcare-services provider, formerly known as Anthem, posted a profit of $856 million, or $3.63 a share, compared with $865 million, or $3.59 a share, during Q4 2022. The company also announced $42.5 billion in revenue for Q4 2023, a 7% increase from the $39.9 billion in revenue reported for the prior year quarter. For the full year 2023, Elevance Health brought in $171.3 billion in revenue and $6 billion in profit. This compares to $156.6 billion in revenue and $5.9 billion in profit for 2022. Operating revenue for the full year was $148.6 billion,... Read More »
Top Home Health & Hospice Investors of 2023
The deal activity of Home Health & Hospice investors has been on a steady decline over the past two years, ever since reaching its peak in the fourth quarter of 2021. There were 95 reported transactions in the 2023 Home Health & Hospice market, which is a 16% decrease from 2022 when there were 113 deals announced. The sector was impacted by a number of headwinds, such as low wages, rising cost of delivering care, staffing challenges and a fear of violence among home care aides, nurses and therapists. For 2024, home care leaders are looking toward AI, alternative payer sources, employee-centric solutions and much more so they can provide an integrated and individualized care plan to... Read More »
Healthcare M&A Volume Falls in Q4:23, According to Acquisition Data from LevinPro HC
Health care merger and acquisition activity declined in the fourth quarter of 2023, dropping to 493 deals, according to new acquisition data from LevinPro HC. Activity in the fourth quarter was 4% lower than in the third quarter of 2023, when 511 transactions were announced. Compared with the fourth quarter of 2022, activity fell 13% in the fourth quarter. The slowdown was felt across each healthcare vertical. Activity in sectors such as Physician Medical Groups saw significant declines in M&A volume, with 103 deals, an 18% decrease compared to the previous quarter. Demand for healthcare real estate, such as medical office buildings and properties, has driven high deal volume in the... Read More »
Headwinds Take Toll on Q4 and FY 2023 Healthcare M&A
Fourth Quarter Results If we had to judge healthcare M&A activity in the fourth quarter of 2023, we’d say it was “fine.” Volume reached 489 deals, the slowest quarter of the past two years, but considering the macroeconomic headwinds the industry faced in 2023, activity could have been much slower. Deal activity in the fourth quarter of 2023 was 4% lower than volume in the third quarter and 14% down from Q4:22. In 2022, the quarterly M&A activity averaged 610 deals, but that fell to 538 in 2023, and with headwinds remaining essentially unchanged, we expect 2024 to keep that trend. Dealmaking remained relatively stable in the fourth quarter due to another wave of private equity... Read More »Schedule a demo
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