The dollar volume of merger and acquisition activity in the healthcare industry more than doubled in the second quarter of 2012, compared to the first quarter, with 251 deals worth $61.2 billion, according to an Irving Levin Associates report.
The activity represents a three percent increase in deal volume and a 16 percent decrease in dollar volume from the second quarter of 2011, which saw a total of 243 deals worth $73.5 billion.
The dollar volume for the second quarter of 2012 doubled despite a decline in the number of transactions announced. The three healthcare service areas that saw the most M&A activity include:
1. Long-term care — 35 deals worth $1.9 billion
2. Hospitals — 22 deals worth $4.5 billion
3. Physician groups — 21 deals worth $4.2 billion
Hospitals saw a 15 percent decrease in deal volume, compared to deal volume in the first quarter of 2012. Hospital M&A activity also represents a 31 percent decrease in deal volume, yet a 28 percent increase in dollar volume, from the second quarter of 2011 when there were 32 deals worth $3.5 billion.
The entire healthcare services sector accounted for 133 deals worth $23.1 billion, or 38 percent of the total deal volume this quarter. This dollar volume is almost triple the volume in the first quarter of 2012.
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The activity represents a three percent increase in deal volume and a 16 percent decrease in dollar volume from the second quarter of 2011, which saw a total of 243 deals worth $73.5 billion.
The dollar volume for the second quarter of 2012 doubled despite a decline in the number of transactions announced. The three healthcare service areas that saw the most M&A activity include:
1. Long-term care — 35 deals worth $1.9 billion
2. Hospitals — 22 deals worth $4.5 billion
3. Physician groups — 21 deals worth $4.2 billion
Hospitals saw a 15 percent decrease in deal volume, compared to deal volume in the first quarter of 2012. Hospital M&A activity also represents a 31 percent decrease in deal volume, yet a 28 percent increase in dollar volume, from the second quarter of 2011 when there were 32 deals worth $3.5 billion.
The entire healthcare services sector accounted for 133 deals worth $23.1 billion, or 38 percent of the total deal volume this quarter. This dollar volume is almost triple the volume in the first quarter of 2012.
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