A new survey and report from BofAML and HealthLeaders Media reveal a number of key deal trends. These include the rise of “non-traditional” pairings, plus the continued pursuit of wide-ranging financial and care-delivery goals.
1. NON-TRADITIONAL PAIRINGS TAKE CENTER STAGE
After years of steady industry consolidation, many of this year’s most transformative deals no longer take place between providers. Instead, non-traditional pairings—such as provider/pharmacy, provider/insurer, and multiple large companies—are coming to the fore. More than two-thirds of respondents feel that the CVS/Aetna merger will have a major impact within the next three years.
2. WIDE-RANGING FINANCIAL OBJECTIVES STAGE
Financial goals continue to be a major deal driver. While improving financial stability remains the top financial objective, there are a wide range of other goals that are nearly as important.
3. A MULTITUDE OF CARE-DELIVERY GOALS
Similarly, healthcare leaders that pursue strategic transactions seek a variety of different care-delivery objectives. Improving care efficiencies and clinical integration, expanding into new care delivery areas and adding talent remain top goals. Most deals are still focused on growth, rather than divesting non-core units to sharpen a strategic mission.
4. A SLOWDOWN IN DEALS
Will 2019 be the year that the pace of healthcare deals begins to slacken? This year, more healthcare leaders report no recent deal activity than in 2018, and fewer report being part of an acquisition.