Hospitals and healthcare providers, as well as healthcare IT companies, are the subsectors most likely to see increased consolidation over the next twelve months, according to a report released today by Bass, Berry & Sims PLC.
Published in association with Mergermarket, the "Healthcare & Life Sciences M&A Outlook" cites capital needs and economies of scale as the two major drivers for consolidation among hospitals and providers.
86 percent of respondents expect M&A activity to increase in healthcare and life sciences driven by these factors:
- Increased demand for facility and equipment improvement – 46 percent
- Need for IT support/capabilities – 42 percent
- Rising compliance costs – 42 percent
72 percent of corporate respondents bought representations and warranties insurance in 2013. In 2014, nearly 90 percent of all respondents will purchase representations and warranties insurance.
The "Healthcare & Life Sciences M&A Outlook" is based on interviews with healthcare and life sciences professionals.
View the full report here.