The Rehabilitation sector is still fairly fragmented, but consolidation is coming. Some 40 deals have been announced in 2016, a 21% increase compared with 2015’s then-record of 33 deals. This year saw a ramp-up in the number of deals announced by REITs and private equity firms, too.
REITs are on the move in the healthcare services sectors, and rehabilitation hospitals are following the trend we’ve noted in the Hospital sector. Through December 1, REITs have made five acquisitions targeting rehabilitation hospitals, compared with two such deals announced in 2015, and two in 2014.