Physician medical groups were the most active sector in healthcare M&A in the first quarter of 2026, accounting for 145 of the 549 publicly announced transactions tracked by Irving Levin Associates, according to a July 20 news release.
Overall deal volume was essentially flat compared to both the prior quarter and the same period a year ago. Healthcare services accounted for roughly 70% of all activity, with medical outpatient buildings (69 deals), home health and hospice (34) and behavioral health (24) rounding out the most active sectors. Private equity activity increased 12% quarter-over-quarter to 181 deals, with physician medical groups again leading as a top target at 72 PE deals.
Disclosed deal value reached $73.58 billion in Q1, down from $120.5 billion in Q4 2025 but up from $60.53 billion in Q1 2025. The largest deal was Boston Scientific’s $14.5 billion acquisition of Penumbra, while the largest healthcare services deal was the $1.1 billion sale of EyeSouth Partners’ retina business to Retina Consultants of America.
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