Wall Street Panel: A Rush of M&As Could Hit This Health Care Sector

Merger and acquisition activity slowed inside Nashville’s health care industry last year, following a 2018 that saw three multibillion-dollar transactions. As for this year, dealmakers may want to move quickly. “We think you’ll see more modest deal volume [in 2020],” RBC Capital Markets Managing Director Frank Morgan said. “It’s going to be down this year, and when you think about the presidential election coming up, the closer you get to that, anything that gets done will get done sooner rather than later in the year.” Morgan said any M&A activity this year will likely be much smaller than the mega-mergers the industry saw in 2018 and will be focused on tech — such as HCA’s recent purchase of cost reduction platform Valify. However, there is one new sector that focuses on keeping patients out of the hospital that could see a rash of deals in 2020. “Home health care — you should see a lot [of activity] there,” Morgan said. “A major change in reimbursement for home health care, I think, is going to set off a major wave of consolidation.”

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Source: https://www.bizjournals.com/nashville/news/2020/01/31/wall-street-panel-a-rush-of-m-as-could-hit-this.html

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