Healthcare M&As: Volume Up; Value Down

He cautioned that increased Federal Trade Commission interest could make hospitals more wary of M&As. Hospitals continue to acquire physicians groups as part of their accountable care organization strategies.

Steever says managed care is looking to consolidate and diversify. The number of managed care deals increased from one in first quarter 2011 to six in first quarter 2012. The latest round of deals was valued at $488 million. Health plans are looking at Medicare Advantage and Medicaid companies. He adds that "insurers are more concerned about what the Supreme Court may do" so they are also buying into other sectors such as pharmacy benefit managers and e-health businesses to diversify revenues.

See Also:
M&A: Hospitals Take Control