1H 2022 Healthcare M&A Report

Take a deep breath and let us reset for a moment. That seems to sum up 1H22 in Healthcare M&A. Unless you’re old enough to remember the 1918 Spanish influenza epidemic, none of us have seen the Healthcare Industry in a period quite like the past two years. As we emerge, vaccines in hand, it was maybe inevitable dealmakers would take a step back and breathe, and that’s what we saw, a very slow, cautious reset. Only 12 big hospital M&A deals were cemented in the first three months in the industry. That seems hard to believe. Everyone went back to their corner and took a stool. Then, even if deal numbers remained depressed, the heavyweights were back at it in Q2. None of this should be a surprise, a lot of energy was expended last year as 2021 offered catalysts for acceleration. There was talk of a change to capital gains taxation from the new Biden administration. It didn’t happen, but nothing accelerates deals faster than the threat of higher taxation and a potential deadline. In addition, the Biden administration has been pushing federal regulators to scrutinize mergers and acquisitions in the industry more closely, providing additional pressure. So there was pressure to get things done before 2022, leaving less unfinished business heading into this year…