Healthcare Reform Boosts Second Quarter Long-Term Care M&A

The long-term care and home health and hospice sectors recorded the healthcare industry’s best year-over-year growth in the second quarter of 2013, boosted by the Affordable Care Act, says Irving Levin’s most recent health care merger and acquisition report. 

The number of home health and hospice deals rose 67% in the second quarter of 2013 compared to the same period last year, according toThe second quarter logged 10 announced deals, up slightly from the first quarter’s nine deals and nearly doubling 2012’s six deals during the comparable time frame, says The Health Care M&A Report.  Home health and hospice logged the biggest year-over-year growth out of all health care sectors in the report. 

Long-term care saw the largest yearly growth behind home health and hospice, up 47% in the second quarter with 53 deals recorded. Deal volume for long-term care rose 23% from the previous quarter’s 43 transactions. 

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Health care merger and acquisition activity in 2013’s second quarter was up 10% overall versus the previous quarter in terms of deal volume, but down 15% compared to the same quarter in 2012. 

Deal value from the first to the second quarters rose “significantly” across the healthcare industry, up nearly 252% to $52.6 billion. Compared to last year, deal value rose slightly from $52.3 billion. 

Under the health care services sector, managed care saw the largest year-over-year decline, dropping 67% in 2013 from 2012’s second quarter.

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“The health care merger and acquisition market is held hostage to the onset of the Affordable Care Act,” said Lisa E. Phillips, editor of The Health Care M&A Report, in a statement. “Some services sectors, such as Home Health and Hospice, Long-Term Care, Physician Medical Groups and Rehabilitation, are seeing continued activity, thanks to the move toward Accountable Care Organizations.” 

Read more about 2013 M&A. 

Written by Alyssa Gerace