The number of mergers and acquisitions in the health services sector for the 12 months ended November 15, 2021 was 56% higher than the previous year. Aggregate deal volume rose from 1,138 deals in 2020 to 1,773 for the 12 months ended May 15, 2021. Aggregate deal value in the health services sector rose 227%, from $62 billion in 2020 to $203 billion for the 12 months ended May 15, 2021. The share of “mega deals” valued at $5 billion or more rose from $11 billion in 2020 to $107 billion in 2021. In 2020, mega deals represented 18% of the total $62 billion deal volume. In 2021, mega deals represented 53% of the total $203 billion deal volume.

During 2021, the five subsectors with the highest deal volume were long-term care, physician medical groups, home health and hospice, behavioral health, and laboratory/imaging and dialysis. Additional details were as follows:

1. Long-term care: There were 445 deals in the sector valued at $18.6 billion, representing 25% of total deal volume, and 9% of aggregate value.
2. Physician medical groups: There were 407 deals in the sector valued at $5.5 billion, representing 23% of total deal volume, and 3% of aggregate value.
3. Home health and hospice: There were 137 deals in the sector valued at $12.7 billion, representing 8% of total deal volume, and 6% of aggregate value.
4. Behavioral health: There were 114 deals in the sector valued at $5.7 billion, representing 6% of total deal volume, and 3% of aggregate value.
5. Laboratory/imaging and dialysis: There were 102 deals in the sector valued at $27.1 billion, representing 6% of total deal volume, and 13% of aggregate value.

Between 2020 and 2021, the deal volume doubled in three subsectors: rehabilitation, physician medical groups, and managed care.

1. Rehabilitation: The 81 deals in 2021 represented a 145% increase over the number of deals in this sector in 2020. The $3.4 billion deal value in 2021 was 408% above the value in 2020.
2. Physician medical groups: The 407 deals in 2021 represented a 119% increase over the number of deals in this sector in 2020. The $5.5 billion deal value in 2021 was 55% above the value in 2020.
3. Managed care: The 47 deals in 2021 represented a 114% increase over the number of deals in this sector in 2020. The $7.2 deal value in 2021 was 2% above the value in 2020.

For the behavioral health sector, the 114 deals in 2021 were 56% above the 2020 volume. The 2021 $5.7 billion deal value was 103% above the 2020 deal value.

These statistics were reported in “Health Services: Deals 2022 Outlook” by researchers at PricewaterhouseCoopers, LLP. The analysis is based on merger and acquisition data tracked by LevinPro HC and LevinPro LTC, and through S&P Capital IQ.

The full text of “Health Services: Deals 2022 Outlook” was published in December 2021 by PricewaterhouseCoopers, LLP. A free copy is available online at https://www.pwc.com/us/en/industries/health-industries/library/health-services-deals-insights.html (accessed January 4, 2022).

For more information, contact: Ryan Cangialosi, Senior Director, PricewaterhouseCoopers, LLP, 2121 North Pearl Street, Suite 2000, Dallas, Texas 75201; 347-443-2157; Email: ryan.a.cangialosi@pwc.com; Website: https://www.pwc.com/