Merger and acquisition activity in the health care industry grew 11 percent in 2011, continuing a trend of consolidation within the industry.
About 980 deals worth $227.4 billion were announced in 2011, compared to the $205.6 billion in deals during the year-ago period, an increase of 11 percent, according to data compiled by Norwalk-based Irving Levin Associates.
Deal making in four services sectors posted notable growth in 2011 including hospitals, long-term care, managed care and physician medical groups. Â
For the past five years, the health care M&A market has generated on average 1,000 deals worth in the neighborhood of $230 million each year.
“We predict that the dynamics of the 2011 market will forge ahead into 2012,” said Sanford B. Steever, editor of The Health Care M&A Report. “In particular, we expect to see strong deal making in the four technology sectors as well as in facility-based service sectors, such as Hospitals and Long-Term Care. Despite the rhetoric of repeal, hospitals and other providers will keep pursuing mergers and acquisitions to assemble the component parts for building accountable care organizations.”
