July 2021 | Report

What's Driving the Current Wave of Healthcare M&A and Investment?

Assessing key trends and drivers for providers, payers, and life sciences in a post-pandemic market

What's Driving the Current Wave of Healthcare M&A and Investment?

We’ve experienced unbelievable change over the past year in the way we think about and consume healthcare. We witnessed the quickest vaccine delivery in history. Many of us likely had our first virtual health encounter. And along the way, payers, providers, tech companies, and life sciences organizations collaborated to integrate a range of new patient-centric technologies—increasing engagement, improving value-based care, and contributing to better outcomes. 

It’s no wonder, then, that when surveyed earlier this year, nearly half of healthcare CFOs said the pandemic will drive an increase in partnerships across the healthcare ecosystem. Following a stall in deal volume with the onset of COVID-19, deal volume rebounded with renewed interest in 2020, culminating in a high-velocity fourth quarter with deal volume 3% higher than in 2019’s record-setting year. 

The momentum hasn't slowed in 2021, particularly as special purpose acquisition companies (SPACs) and private equity firms—which had a staggering $2.9 trillion in capital by the end of 2020—continue to fuel dealmaking. 

Whether you’re a strategic or financial investor—or a healthcare business leader—understanding what’s driving M&A and investment is critical to developing strategies that meet the needs of today’s consumers. We’ll discuss the trends and drivers for three vital segments of the healthcare deal landscape: providers, payers, and life sciences.

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