Merger and acquisition deals reached a five-year high in the revenue cycle management and health IT market for 2019, according to a report from specialist investment bank Greenberg Advisors.
Five trends to note:
1. Across the revenue cycle management and health IT markets, merger and acquisition activity reached $25.9 billion in 2019. That's up significantly from 2018, when M&A activity totaled $12 billion.
2. Since the second half of 2017, deal value has climbed each half-year.
3. RCM and HIT companies that served physicians and hospital groups continued to see the most attention from buyers, which were largely private equity firms. This was especially true for RCM and HIT firms in growing outpatient venues like ambulatory surgery centers and behavioral health providers.
4. The year 2019 brought with it the highest volume of billion-dollar deals for RCM and HIT companies, which reflects the bullish bets investors are making on the market, according to Greenberg Advisors.
5. Overwhelmingly, RCM and HIT companies with $20 million or less in revenue still make up the majority of sellers.
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