Life sciences & health care M&A update: Q4 2017

Digital Health technologies are driving innovation across the health care continuum and are expected to play a continued role in driving M&A activity across the sector. This Life sciences & health care M&A update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the life sciences and health care industry.

Digital health: Trends and transformations

Digital Health, which constitutes a wide spectrum of technological innovations related to creating, capturing, analyzing, and sharing health care data is attracting greater interest. Digital Health technologies are driving innovation across the health care continuum, with significant and wide-ranging effects including:

  • More effective patient outcomes
  • Cost efficiency for health care providers
  • Opportunities for continued innovation

Implementing and leveraging advances in new Digital Health solutions is expected to play a continued role in driving M&A activity across the life sciences and health care sector, with key M&A drivers including:

  • Focus on value-centric health care delivery: Value-based market forces are driving point-of-care to more cost-effective treatment sites such as Home Health or Telehealth solutions, which are typically more inclined to utilize Digital Health. A recent poll of health care executives substantiates this M&A driver, with 57 percent reporting a need in finding new approaches to reduce costs through analytics-driven health care delivery methods1.
  • Consumer adoption of digital health: Digital Health solutions, such as patient engagement smartphone apps and wearable devices, can increase patient and provider connectivity and lead to more effective preventative care alternatives. A recent survey indicated that 46 percent of consumers are considered active Digital Health adopters, up from 19 percent in 20152.
  • Accessible health care information: Health care providers are utilizing advanced Digital Health platforms, such as electronic health records systems, that enable more efficient care methods and patient tracking, a trend exemplified by 96 percent of hospitals now using certified electronic health record systems3.

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1 "What 183 C-suite executives told us about their top concerns,” Advisory Board. May 2017.
2 “[Rock Health] Survey: 46 Percent of Consumers Now Active Digital Health Adopters,” Healthcare Informatics. December 2016.
3 “Adoption of Electronic Health Record Systems among U.S. Non-Federal Acute Care Hospitals: 2008-2015,” Healthcare Informatics. May 2016.

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