What you should know:
1. The top three deals of 2018 were Cigna’s $67 billion acquisition of Express Scripts, KKR’s $9.9 billion acquisition of Envision and RCCH HealthCare Partners’ acquisition of LifePoint Health for $5.6 billion.
2. Those three deals raised the average quarterly mega-deal value to double digits for the second consecutive year, totaling $82.5 billion.
3. The KKR-Envision deal was the fifth largest mega-deal announced since 2014.
4. The top five deals of 2018 were rounded out by Welltower’s $4 billion acquisition of Quality Care Properties and WellCare Health Plans’ $2.5 billion acquisition of Meridian Health Plan, which tied for fifth with Minnetonka, Minn.-based UnitedHealth Group’s $2.5 billion acquisition of Genoa Healthcare.
5. In 2018, 231 deals involved physician medical groups. Deals in the physician medical group sub-sector grew 11.6 percent year over year, for a total value of $12,251 in 2018.
6. PwC predicts health services companies will continue seeking deals in 2019, driven by regulatory uncertainty, a consumer-focused approach, high costs and cross-industry deals such as Amazon’s health venture with Berkshire Hathaway and JPMorgan Chase.
More articles on transactions/valuation:
Anchor Health Properties, Carlyle Group affiliate acquire three medical office buildings — 4 insights
ASC supply chain tip of the day: Rely on your distributor
5 things to know about accreditation standards & challenges for ASCs
At the Becker's 23rd Annual Spine, Orthopedic and Pain Management-Driven ASC + The Future of Spine Conference, taking place June 11-13 in Chicago, spine surgeons, orthopedic leaders and ASC executives will come together to explore minimally invasive techniques, ASC growth strategies and innovations shaping the future of outpatient spine care. Apply for complimentary registration now.
