Health Care Deals Decline in Q3, But Home Care Bucks Trend
The number of health care mergers and acquisitions trended downward nearly 10% in the third quarter of 2012, but the home health care sector bucked that trend, seeing a 50% increase in deals year-over-year.
The trend overall represents a continuation from the second quarter of 2012, and aligns with a downturn in transactions in dollars, which declined 36% year-over-year.
“Based on preliminary figures, the number of merger and acquisition transactions in the health care industry declined by nearly 10% in the third quarter of 2012 compared with the third quarter of 2011,” said Levin and Associates, which tracks deals in the sector. “It was the second straight quarterly decline in the number of publicly announced health care transactions. The dollar volume of health care mergers and acquisitions in the third quarter of 2012 dropped by 35% from the second quarter of 2012 and by 36% from the third quarter of 2011.”
The home health care segment counted nine deals during the quarter, compared with six deals in the same quarter of 2011. The transaction volume also marked a 50% increase over the previous quarter. The total dollar amount of those transactions during the quarter reached $4.68 billion total.
Written by Elizabeth Ecker