United States

Q4 2017 Health Care Industry Spotlight



Cybersecurity a growing focus

The complicated array of challenges inherent in HIPAA compliance regarding cybersecurity can be best tackled by key focuses on three things: people, process and technology, RSM industry professionals stress. Reviewing who has access, which systems are fully updated, and whether or not processes need to be revisited are priorities. HIPAA regulations are primarily centered on information governance; ensuring the security of interoperability between vendors and providers is critical, with an emphasis on recovery plans in particular.

Key findings

  • 2016 and 2017 see increased volume in mergers and acquisitions (M&A) in pure-play healthcare technology systems, although not as much as one may expect just yet.
  • Significant deal value—propped up by outliers—suggests cash-rich acquirers and avid bidding for top assets.
  • Consolidation in key niches still a driving trend, requiring close focus from key players, especially on the part of private equity (PE).
  • Macro factors such as aging populations, evolving regulations and advances in key technologies affecting both consumer interfaces and back-office functions will continue to foment consolidation.

Looking ahead

Consolidation and competition will continue to be primary characteristics across the entire health care market. Complicated dynamics related to pricey valuations will continue to prolong transaction durations in the market overall for buyers of all kinds, from PE investors to strategic acquirers. A few outliers will still emerge, however, as some acquirers look to tout their swifter closing times as an added attraction. PE dry powder will bolster bidding prices amid the health care middle market, while continued high costs and potential negative impacts to patient populations will exert pressure upon smaller health care providers.

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A year in review: Health care industry

Q3 2017 Health Care Industry Spotlight


Q3 2017 Health Care Industry Spotlight

Regulatory uncertainty coupled with high valuations continue to stymie the overall volume of health care dealmaking.

Q2 2017 Health Care Industry Spotlight


Q2 2017 Health Care Industry Spotlight

Health care M&A activity continues its downward trend, but an uptick in technology M&A points to an interest in industry-specific software.

Q1 2017 Health Care Industry Spotlight


Q1 2017 Health Care Industry Spotlight

With dealmaking characterized by large transactions amid slowing volume, health care remains an attractive yet challenging prospect.

  • May 30, 2017

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Events / Webcasts


17th Annual Healthcare Private Equity & Finance Conference

  • February 19, 2020


ESG matters: Creating value beyond the bottom line

  • April 10, 2019


Health care M&A webcast: Latest trends and best practices

  • December 04, 2018


U.S. Tax Reform: Private Equity Firms and Portfolio Companies

  • January 31, 2018