ECG’s Healthcare Mergers and Acquisitions (M&A) Update for Q1 of 2024 is now available! This edition includes a spotlight on distressed healthcare organizations.
Here are four key takeaways:
- Announced US transaction volume remained relatively flat quarter over quarter, with 377 announced transactions in Q1 2024 compared to 381 in Q4 of 2023.
- Notable transactions from the quarter include the following:
- Cyberattacks within healthcare are increasing in prevalence and causing significant data security issues. Change Healthcare experienced a recent cyberattack, breaching part of the organization’s IT network. UnitedHealth Group paid more than $3.3 billion to providers after many were unable to fill medications or get reimbursed by payers.
- Bankruptcies in the healthcare industry are on the rise. According to a report from Gibbins Advisors, the number of 2023 bankruptcy filings in the healthcare sector (79) was the highest since 2019 (51). In 2023, 12 hospitals declared bankruptcy, up from 2 in 2022, 3 in 2021, and 6 in 2020.
- Q1 of 2024 saw 136 announced US healthcare private equity deals, up from 136 in the prior quarter. The quarter’s transaction volume was well below that of the average over the last two years.
- Notable healthcare private equity deals from the quarter include the following:
In March 2024, MyMichigan Health announced that it had signed a definitive agreement to acquire Ascension Michigan’s locations in Saginaw, Tawas, and Standish. ECG served as the exclusive strategic and financial adviser to MyMichigan Health. Learn more about the transaction here.
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Edited by: Matt Maslin
Published April 10, 2024
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