Healthcare M&A Activity Hit Record High in 2022: A Look at the Deals and Market Trends
Despite headwinds, the healthcare M&A market thrived in 2022. Preliminary results reveal that deal activity hit a historic high of 2,409 deals, breaking the record set in 2021 by more than 150 transactions, according to data captured in our LevinPro HC database. And there’s likely a significant cache of deals to be discovered in upcoming annual and quarterly reports. The level of activity, despite rising interest rates and borrowing costs, inflation and labor costs, highlights the strength of the tailwinds, such as aging demographics, the shift to value-based care and an abundance of private equity capital. The 2023 healthcare M&A market is looking just as active. The announced... Read More »
U.S. Oral Surgery Management Closes $125 Million Credit Expansion
U.S. Oral Surgery Management (USOSM) announced on December 6 that it closed a new round of funding, a $125 million credit expansion that will position USOSM for growth and expansion in 2023. A portfolio company of Oak Hill Capital Partners, USOSM is a management services organization (MSO) focused on oral and maxillofacial surgeons (OMS) founded in 2017. USOSM has partnered with more than 170 OMS practice locations across 24 states. According to data captured in LevinPro HC database, USOSM has completed nine acquisitions in 2022. The acquired practices are spread across Kentucky, Tennessee, Kansas, Texas, Illinois, Michigan, California, Florida, Indian and Virginia. And, according to... Read More »
Home Health Valuations Steady Despite Crushing Labor Costs: An Interview With Al Veach & Jason Harrison of Agenda Health
Deal activity in the Home Health & Hospice (HH&H) space has slowed dramatically over the course of the year. The break-neck pace set during the first quarter of 2022, when 32 HH&H transactions were announced, didn’t last. During the fourth quarter, HH&H deals are barely trickling in. There have been just 15 deals announced during this quarter as of December 5th, a 62% decrease from Q4’s total in the previous year, when there were 39 deals announced. We will see where we end up on January 1, but a decline seems likely. Despite the slow market, M&A advisors are optimistic. We spoke with Al Veach and Jason Harrison of Agenda Health about their outlook on the home health... Read More »
Earnings Takeaways: How Companies Are Evolving to Meet Labor and Inflation Headwinds
It’s been a turbulent earnings season. Although some companies are thriving, inflation, reimbursement changes, labor shortages and other headwinds have hit every organization across the board. Some companies, like American Well Corp (Amwell) (NYSE: AMWL), U.S. Physical Therapy, Inc (USPT) (NYSE: USPH) and Addus HomeCare Corp. (NASDAQ: ADUS), were able to post strong financial and performance results despite the headwinds, while others, like Providence Health & Services (NASDAQ: PRSC), Universal Health Services (NYSE: UHS) and Laboratory Corporation of America Holdings (Labcorp) (NYSE: LH), reported significant losses. We don’t expect these headwinds to disappear anytime soon as... Read More »
High Hopes for the Rehabilitation Market: Strong Tailwinds Push Deal Activity
Whenever we speak with dealmakers in the healthcare M&A market, they frequently discuss how the market is fragmented. Although there is no shortage of major players, especially as retail and tech giants push deeper into healthcare, there’s still a high volume of smaller, independently owned agencies and providers. The U.S. outpatient rehabilitation market has more than 37,000 independent clinics, and no company owns more than 10% market share. Some significant players include Select Medical (1,933 clinics), ATI Physical Therapy (900 clinics) and U.S. Physical Therapy, Inc. (629 clinics). Additionally, rehabilitation services are split across many sources: hospitals, therapy clinics,... Read More »Schedule a demo
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