Q1-2019 Anesthesia Services Update– Over the past two decades, the anesthesia services market has seen a steady wave of consolidation activity driven by both private equity investments and strategic consolidators. Although the anesthesia services market is mature, many consolidators continue to search for add-on acquisition opportunities to further bolster the growth of established platforms, while new industry entrants have begun a new consolidation wave.
Q1-2019 Healthcare Staffing Update– In the first quarter of 2019, M&A transaction volume was relatively quiet in the staffing sector as consolidators work to integrate acquisitions made over the last 18 months. A common theme throughout the healthcare staffing marketplace has been the interest in locums tenens businesses, both as platforms and add-on acquisitions, to diversify an established healthcare staffing service mix.
Q1-2019 Home Health & Hospice Update– Provident expects continued M&A opportunities will arise from smaller agencies not having the operational capacity or resources to adjust to the new PDGM payment framework. Furthermore, larger providers such as Addus, Elara Caring, Humana, and LHC Group will continue to utilize their infrastructure to drive further consolidation in the industry.
Q1-2019 Laboratory Services Update– Continued uncertainty about future fee schedule cuts has slowed overall spend in the acquisition market of laboratory services. Although slightly suppressed deal volume is anticipated to continue, Provident expects to see a steady flow of strategic transactions announced throughout the rest of the year as opportunistic providers will look to capitalize on market uncertainty.
Q1-2019 Pharmacy Services Update – Private equity investment and M&A continued to reshape the pharmacy and infusion services sectors in the first quarter of 2019. Despite a recent wave of vertical integration between payors, PBMs and providers in the latter half of 2018, large-scale acquisitions have and will continue to occur as stakeholders expand their core competencies.
Q1-2019 Private Equity Industry Update– Volatile public markets and political uncertainty are likely the cause of lower activity in Q1 2019 for both deal volume and capital invested. Due to the lack of investments, this is likely to leave a substantial amount of dry powder that can stimulate consolidation towards the end of the year.