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Analysis

Life sciences and health care M&A Update: Q1 2024

The escalating cost of labor and supplies, coupled with a growing number of high-acuity patients, is causing financial stress for hospitals.

Life sciences and health care trends

  • Health care services
    Generative AI solutions are being utilized to manage administrative tasks such as revenue cycle management, a trend that will continue in 2024.1
  • Health care technology
    The health care IT sector is experiencing heightened interest due to evolving consumer preferences and advancements in technology.2
  • Life sciences and pharma services
    Amid uncertainties in the capital markets, life sciences companies are working to ensure they are ready for IPOs and M&A transactions once market challenges abate.3
  • Medical devices and supplies
    The medical device industry is showing signs of optimism, with an upswing in the utilization of AI-powered digital treatments, at-home diagnostics, and a growing acceptance of biometric devices and wearables for remote patient monitoring.4
  • Payors and payor services
    The first quarter saw a significant rise in health insurance premiums, attributed to medical inflation, wage increases, and increase in costly treatments..5

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References

1 Roshan Deshmukh and Pooja Parvatkar, “5 key trends for Q1 2024 shaping the future, Allied Market Research, accessed May 2024.
2 Dan Linsalata and James Clark, “Healthcare IT sector brief Q1 2024,” Harris Williams, February 27, 2024.
3 Brad Burch et al., “Q1 activity shaping the outlook for 2024 in life sciences sector,” Stout, February 22, 2024.
4 Pride Industries, “Medical device industry trends for 2024,” January 5, 2024.
5 Alex Strautman, “Facing the future: Health insurance and health care 2024 trends,” Word & Brown, February 5, 2024.

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