Are We Past the Healthcare Retail Peak?

Are We Past the Healthcare Retail Peak?

The Pull-Back Strategy of Village MD The March 2024 announcement from Walgreens Boots Alliance to scale back nearly half of its VillageMD clinics has sent shockwaves through the retail healthcare field. This pull-back, coupled with similar moves by Walmart and hints of caution from other retailers like CVS Health, raises serious questions about the long-term viability of the entire model. When we first covered the retail healthcare space back in late 2022, the message from many industry experts was that retail healthcare was here to stay. But now, with the recent news of Walgreens planning to close 160 VillageMD clinics across several states, we can’t help but to wonder – has retail... Read More »
The 10 Multi-Billion Dollar Deals that Kicked off 2024

The 10 Multi-Billion Dollar Deals that Kicked off 2024

The first quarter of 2024 started the Healthcare M&A market off with a bang, with 13 transactions in the billion-dollar price range announced during the first quarter. This compares to Q1:23, when only six transactions exceeded $1 billion. More than half of the billion-dollar transactions announced during Q1:24 were in the Biotechnology sector. Acquirer Target Price Target Sector Novo Holdings A/S Catalent, Inc. $16,500,000,000 Other Services Gilead Sciences, Inc. CymaBay Therapeutics, Inc. $4,300,000,000 Biotechnology Health Care Service Corporation Cigna’s Medicare assets $3,700,000,000 Managed... Read More »
First Quarter 2024 Healthcare M&A Results

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 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

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

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 »