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David Jasmund

E: djasmund@pcecompanies.com

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Industry Trends

Jobs, AI, and Patient Trends Unveiled

A Deloitte's survey reveals just 3% of health system executives have a positive outlook, emphasizing workforce talent challenges, M&A impact, and affordability concerns. Healthcare sees a shift with growing job opportunities for physicians but lower wage growth. Despite declining online searches for primary care, rising patient visits highlight the industry's resilience. The surge in AI adoption, projected to be a $208 billion industry by 2030, emphasizes the need for healthcare practitioners to integrate technology.1 2

UF Health Expands Services in St. Johns

University of Florida’s hospital system UF Health has completed the merger of Flagler Health+, officially rebranding it as UF Health St. Johns. The acquisition of the 335-bed facility and other sites of care, aims to bring advanced healthcare resources, research opportunities, and training programs to the growing St. Johns County region. This move aligns with the increasing trend of hospital mergers and consolidations observed across the healthcare industry, reflecting a strategic response to evolving healthcare demands.3

New Guidelines Pose Challenges for Healthcare M&A

Recent finalization of antitrust guidelines by the DOJ & FTC federal agencies may complicate the landscape for healthcare mergers and acquisitions. Despite critiques, the stricter rules, particularly targeting vertical and cross-market deals, raise uncertainties for companies involved in diverse transactions. Healthcare entities now face a more nuanced regulatory environment, prompting cautious navigation of potential challenges.4

AI Pledge: Committing to Responsible Innovation

The White House unveils a commitment from 28 healthcare organizations, including CVS Health and Geisinger, to embrace 'safe, secure, and trustworthy' AI products. The pledge involves informing patients about AI-generated content, adhering to a risk management framework, and advancing health equity. While AI presents opportunities for healthcare, concerns about accuracy, bias, and legal challenges highlight the need for responsible deployment within the sector.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Karuna Therapeutics, Inc.
  • Bristol-Myers Squibb Company
  • $14,025.93
  • ImmunoGen, Inc.
  • AbbVie Inc.
  • $9,529.73
  • Mirati Therapeutics, Inc.
  • Bristol-Myers Squibb Company
  • $6,053.21
  • CymaBay Therapeutics, Inc.
  • Gilead Sciences, Inc.
  • $4,428.92
  • RayzeBio, Inc.
  • Bristol-Myers Squibb Company
  • $4,152.51
  • Carmot Therapeutics Inc.
  • Roche Holding AG
  • $3,461.22
  • Coastal Carolina Hospital/East Cooper Medical Center/Hilton Head Hospital
  • Novant Health, Inc.
  • $2,400.00
  • Ambrx Biopharma Inc.
  • Johnson & Johnson
  • $2,000.40
  • Aiolos Bio, Inc.
  • GSK plc
  • $1,400.00
  • Icosavax, Inc.
  • AstraZeneca PLC
  • $1,141.44

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Cloudbreak Health, LLC
  • GTCR LLC
  • $180.00
  • Brownsburg Healthcare Facility
  • Sila Realty Trust, Inc.
  • $39.00
  • One Long Term Acute Care Hospital
  • Community Healthcare Trust Incorporated
  • $6.60

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • IFM Due, Inc.
  • Novartis AG
  • $835.00
  • Acclara Solutions, LLC
  • R1 RCM Inc.
  • $680.73
  • SomaLogic, Inc.
  • Standard BioTools Inc.
  • $578.33
  • Sierra Vista Hospital, Inc/Twin Cities Community Hospital, Inc.
  • Adventist Health System/West
  • $550.00
  • Central Health Plan of California, Inc./Universal Care, Inc.
  • Molina Healthcare, Inc.
  • $441.00

 

Source S&P Capital IQ as of 4/15/2024 and PCE Proprietary Data

PCE Transactions

Contacts

David Jasmund

Orlando Office

407-621-2111 |

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Jon Gogolak

Orlando Office

407-621-2136 |

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. Wallis, S. “6 Healthcare Insights from Q4 2023 and What They Mean for You.” Aprio, 7 December, 2023.
  2. 2. Wheeler, T. “2024 Outlook for Health Care Planning for the Future of Health: Top trends for 2024.” Deloitte, 6 December, 2023.
  3. 3. Southwick, R. “Florida hospital system completes merger.” Chief Healthcare Executive, 15 September, 2023.
  4. 4. Pifer, R. “FTC, DOJ finalize merger guidelines that could impede healthcare M&A.” Healthcare Dive, 19 December, 2023.
  5. 5. Olsen, E. “CVS, Geisinger, others sign responsible AI in healthcare pledge.” Healthcare Dive, 15 December, 2023.
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