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Analysis

Life Sciences & Health Care M&A update: Q3 2022

Following a period of massive growth during the pandemic, telehealth is well positioned to remain prominent in the market owing to patients’ desire for convenience of care alongside increasing insurance reimbursement rates.

Life sciences and healthcare trends

  • Health care services
    Health care service providers are experiencing margin contraction due to inflationary pressures, staffing shortages, and supply chain disruptions. This is driving hospital systems to diversify service offerings by acquiring ambulatory sites, digital health platforms, primary care clinics, and post-acute care clinics.1
  • Health care technology
    Data and advanced analytics continue to drive innovation in population health management, revenue cycle management, and patient engagement with these trends encompassing the overarching theme of patients playing a more active role in their health care decisions.2
  • Life sciences and pharma services
    Pharmaceutical companies continue to seek improved efficiencies across all stages of production and distribution leading to continued trends of outsourced contract research organizations and contract development and manufacturing organizations being acquired by large players.3
  • Medical devices and supplies
    Medical device companies are selling a greater number of products directly to consumers thereby placing pressure on major players to grow through acquisition in an attempt to diversify service offerings and add value throughout the supply chain.4
  • Payors and payor services
    Payors are using vertical integration to innovate and drive growth in their Medicare Advantage businesses, which greatly expands the profit pool.5

Life Sciences & Health Care M&A quarterly update: Q3 2022

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References

1 Shubham Singhal and Neha Patel, “The future of US healthcare: What’s next for the industry post-COVID-19,” McKinsey & Company, July 29, 2022.

2 Anthony Capone, “The future of healthcare technology,” Forbes, January 11, 2022.

3 George Washington University, “Pharmaceutical industry trends: Growing technology and innovation,” August 17, 2021. 

4 University of Central Florida, “2022 healthcare industry trends that will make a difference,” accessed October 28, 2022.

5 Singhal and Patel, “The future of US healthcare: What’s next for the industry post-COVID-19.”

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Life Sciences & Health Care Transactions

A demonstrated track record