Blog Author

David Jasmund

E: djasmund@pcecompanies.com

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Industry Trends

AI, Sustainability, and Innovation Shaping the Future of Care

Healthcare leaders are turning to AI-driven automation, telehealth, and sustainable practices to address staff shortages and rising patient demands. Generative AI boosts clinician productivity by streamlining tasks, while minimally invasive surgeries and hospital-at-home models improve care quality. Efforts to reduce supply chain emissions and promote sustainability further enhance healthcare’s impact. These innovations promise to improve access, efficiency, and patient-centered care in a rapidly evolving healthcare landscape.1

AI on the Rise: FDA Clears Next-Gen Devices

The FDA has authorized 950 AI-enabled medical devices through August 2024, with submissions surging from six in 2015 to 221 in 2023. Radiology dominates, accounting for over three-quarters of approvals, while GE Healthcare leads with 81 cleared devices. Ninety-seven percent have used the 510(k) pathway, signaling swift integration. This proliferation underscores AI’s potential to bolster clinical efficiency, refine diagnostics, and elevate patient care across the healthcare sector.2

Florida’s Not-for-Profit Hospital Systems Accelerate Consolidation

Acquisitions by two Florida hospital systems highlight the continued consolidation trend among regional not-for-profit hospitals. Orlando Health acquired three facilities, while AdventHealth moves to purchase ShorePoint Health Port Charlotte and select assets from ShorePoint Health Punta Gorda, slated to close by Q1 2025. These expansions promise boosted local care access and underscore an urgent need for robust healthcare resources, especially following hurricane-related closures.3 4

US Healthcare Leaders See Continued Growth Ahead in 2025

According to a Deloitte survey, 60% of US healthcare leaders hold a favorable outlook for 2025—up from 52% last year—while 69% anticipate higher revenue and 71% foresee improved profitability. Still, 44% worry about regulatory uncertainty under a new administration. Leaders are prioritizing growth strategies (65%), consumer affordability, and digital transformation, aiming to balance profitability with equitable access—shaping a resilient, forward-looking healthcare landscape.5

Charting a Healthier Path: 2025 Dealmaking in Healthcare

Healthcare deal volumes have dipped 9% from 2023 but remain nearly 70% above pre-COVID benchmarks, reflecting sustained sector resilience. A new, pro-business presidential administration is bolstering optimism, especially around potential regulatory shifts and changes to value-based care programs. Private equity sponsors are leveraging innovative deal structures (e.g., private credit–like investments) to address valuation gaps and rising rates. With ample capital, anticipated rate cuts, and easing regulatory uncertainty, healthcare M&A is poised for robust growth in 2025.6

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Catalent, Inc.
  • Novo Holdings A/S
  • $16,704.29
  • R1 RCM Inc.
  • Clayton, Dubilier & Rice, LLC; TowerBrook Capital Partners L.P.
  • $6,924.97
  • Axonics, Inc.
  • Boston Scientific Corporation
  • $3,700.59
  • Longboard Pharmaceuticals, Inc.
  • Langkawi Corporation
  • $2,653.17
  • PetIQ, Inc.
  • Bansk Group LLC
  • $1,445.41
  • Aliada Therapeutics, Inc.
  • AbbVie Inc.
  • $1,400.00
  • Modifi Biosciences, Inc.
  • Merck & Co., Inc.
  • $1,330.00
  • Reneo Pharmaceuticals, Inc.
  • OnKure Therapeutics, Inc.
  • $1,301.63
  • AdvancedMD, Inc.
  • Francisco Partners Management, L.P.
  • $1,125.00
  • Integrated Oncology Network, LLC
  • Cardinal Health, Inc.
  • $1,115.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Resonant Clinical Solutions
  • Audax Management Company, LLC
  • $650.00
  • Sharecare, Inc.
  • Altaris, LLC
  • $617.86
  • Hamilton Thorne Ltd.
  • Astorg Asset Management S A.R.L.; FAX Capital Corp.
  • $286.87
  • 10 assisted living and memory care communities in North Carolina
  • National Health Investors, Inc.
  • $121.30
  • Manufacturing Facility and Reagent Supply in Huntsville, Alabama of Nektar Therapeutics
  • Ampersand Management LLC
  • $90.00

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Kate Therapeutics Inc.
  • Novartis AG
  • $1,100.00
  • Brookwood Baptist Health, Inc.
  • Orlando Health, Inc.
  • $910.00
  • Mountain High Products, LLC
  • Canopy USA, LLC
  • $297.50
  • Select Laboratory Assets of OhioHealth
  • Quest Diagnostics Incorporated 
  • $200.00
  • Black Hills Surgical Hospital, LLP
  • Sanford Health
  • $194.00

 

Source S&P Capital IQ as of 1/17/2025 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. Philips Editorial Team “10 healthcare technology trends for 2025.” Philips, 3 December, 2024.
  2. 2. Han J. “The number of AI medical devices has spiked in the past decade.” Healthcare Dive, 9 October, 2024.
  3. 3. Gooch K. “Orlando Health acquires 3 Steward Florida hospitals.” Beckers Hospital Review, October 24, 2024.
  4. 4. Orlando Health. “Orlando Health Completes Purchase of Hospitals and Physician Practices in East Central Florida.” Orlando Health, 24 October, 2024.
  5. 5. Janisch A. “2025 US health care outlook.” Deloitte, 12 December, 2024.
  6. 6. PWC. “Health services: US Deals 2025 outlook.” PWC, 15 November, 2024.
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