Healthcare M&A Dollar Volume Doubles in 2QThe dollar volume of merger and acquisition activity in the healthcare industry more than doubled in the second quarter of 2012, compared to the first quarter, with 251 deals worth $61.2 billion, according to an Irving Levin Associates report.
The activity represents a three percent increase in deal volume and a 16 percent decrease in dollar volume from the second quarter of 2011, which saw a total of 243 deals worth $73.5 billion.
The dollar volume for the second quarter of 2012 doubled despite a decline in the number of transactions announced. The three healthcare service areas that saw the most M&A activity include:
1. Long-term care — 35 deals worth $1.9 billion
2. Hospitals — 22 deals worth $4.5 billion
3. Physician groups — 21 deals worth $4.2 billion
Hospitals saw a 15 percent decrease in deal volume, compared to deal volume in the first quarter of 2012. Hospital M&A activity also represents a 31 percent decrease in deal volume, yet a 28 percent increase in dollar volume, from the second quarter of 2011 when there were 32 deals worth $3.5 billion.
The entire healthcare services sector accounted for 133 deals worth $23.1 billion, or 38 percent of the total deal volume this quarter. This dollar volume is almost triple the volume in the first quarter of 2012.
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