For healthcare dealmakers, the federal One Big Beautiful Bill Act (OBBBA) – which cuts Medicaid payments to states by approximately USD 1tn over 10 years – is anything but beautiful. The law’s 15% cut to the federal program that provides free or low-cost health coverage has left buyers and sellers uncertain about valuation, stalling transactions for healthcare companies reliant on Medicaid revenue. “Medicaid exposure has become the single biggest valuation barrier in healthcare M&A this year,” said Henry Criss, CEO of Fraum Health, a Hilton Head, South Carolina-based restorative medicine and wellness-care practice. Initial offers are now coming in one to two EBITDA turns lower than comparable deals a year ago, he said.
Read the full article: Medicaid Cuts Not What the Doctor Ordered for Healthcare M&A //
Source: https://ionanalytics.com/insights/mergermarket/medicaid-cuts-not-what-the-doctor-ordered-for-healthcare-ma-dealspeak-north-america/