Thursday, July 22, 2010

Investors expect healthcare M&A uptick through 2Q 2011 because of ACO formation

Merger-and-acquisition (M&A) activity across the entire healthcare industry is likely to become even more frenzied--or at least sustain its current increased pace--over the next year, according to the "Life Sciences & Healthcare Sector Forecast" from the M&A intelligence service mergermarket, the law firm Epstein Becker & Green, P.C., and the investment bank Rodman & Renshaw. The forecast is based on second-quarter 2010 interviews with more than 75 U.S.-based healthcare investors.


  1. At this point on the path of healthcare reform, it's not hard to believe that the healthcare industry as a whole will see an increase in M&As. In my interviews for a recent article on this exact topic, Richard Cohen, president of The Walden Group (a banking firm that specializes in M&As in the healthcare industry), said "Providers are under stress and will need to gain economies of scale, centralize and combine certain functions, and otherwise implement more efficiencies to survive in an environment of shrinking federal and state budgets, expanded healthcare coverage and new technologies."

    You can read the full article, which also speaks to the vendor side, here:

  2. Jennifer-
    Nice article on M&A. I wonder if it will spawn M&A in the supplier ranks as well?