Almost every services sector of the U.S. healthcare industry saw higher levels of merger and acquisition activity in 2015, according to a new report by Irving Levin Associates.
Overall, deal volume rose by 22 percent in 2015 to 936 transactions compared with 765 in 2014. However, when looking at the deals in terms of dollar value, the total ballooned 183 percent to $175 billion.
Only the home health and hospice saw a decline in deal volume in the year, the 2016 Health Care Service Acquisition Report claims, sliding by 33 percent in terms of deal volume. All of the other sectors, including hospitals, physician groups, labs and behavioral health all saw more deals in 2015.
[Also: Tracking 2015 mergers and acquisitions]
"Health care mergers and acquisitions posted record-breaking totals in 2015," said report editor Lisa E. Phillips in a statement. "The services side contributed 62 percent of 2015's combined total of 1,503 deals, which is even higher than 2014, when services deals accounted for 58 percent of the deal total."
Philips attributed the growth to several policies in the Affordable Care Act.
"The shift to value-based outcomes and reimbursement made the post-acute sectors especially appealing for investors," Phillips said.
The hospital sector saw 201 transactions in 2015, according to the report, and an average of 2.6 hospitals were involved in every transaction.
While new payment models that favor scale and integration helped drive 2015 M&A, the report also said state expansion of Medicaid access under Obamacare also played a role.
"We're seeing more sales resulting from bankruptcies, especially in states that have not expanded Medicaid coverage," Philips said.
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