2H 2020 Healthcare M&A Report

The healthcare industry took a huge, unexpected, blow from 2020’s COVID-19 pandemic, a blow we believe may dramatically change the healthcare model and spur M&A activity as organizations race to increase margins, achieve efficiencies, fill gaps in patient expectations and overhaul how and where care is provided. In the United States, the industry suffered lost revenues estimated at $202.6 billion (an average of $50.7 billion per month). As they readied for a surge in hospitalized patients with COVID-19, hospitals faced unprecedented new expenses as revenue from higher-margin, elective procedures and services plummeted. Hospitals had to convert space to deal with the special needs of virus patients, add workers, pay overtime, provide new staff training, even obtain the basics such as personal protective equipment (PPE). Elective surgeries were canceled – either by the hospitals to free space, or by patients out of fear of contracting COVID. Healthcare providers across the country suffered. Damage was equally spread throughout the space, not only independent hospital systems, but across academic medical centers, federal Veterans Affairs facilities and nursing and long-term care facilities. And physicians in private practices across the country reported struggling, some turning to GoFundMe drives to stay afloat, reporting up to 80% drops in patient visits…