Our sister platform LevinPro HC tracks the M&A market across 12 other healthcare sectors, from hospitals and home health to physician medical groups and MOBs, with our deal database also going back to the early 1990s. And the trend in dealmaking that we are seeing in senior care appears to mirror the rest of the healthcare industry.
Like in the seniors housing and care market, we have already broken the annual record for healthcare transactions, and there is still one month to go. As of this filming, we have tracked over 2,230 publicly announced transactions, surpassing the 2,209 transactions from all of 2021, which was the previous annual record high.
A private equity rush into buying physician practices has driven a significant chunk of those deals, but half of sectors have seen big year-over-year increases, including e-Health, diagnostic labs and outpatient care. However, like in senior care, there is a clear slowdown in dealmaking due to rising interest rates and labor costs. November’s deal total, for example, dropped 15% from 213 deals in 2021 to 181 in 2022. We’ve heard that valuations have remained steady in a few sectors, but we will see what sectors are dropped by buyers in 2023 and where the still-plentiful dry powder will be allocated instead.
