Labor shortages and rising costs aren’t expected to limit healthcare deal volume in 2022, according to a new survey of more than 300 industry executives.
The survey findings, published this week by advisory firm KPMG, showed that 70% of healthcare and life sciences executives expect increased M&A activity in 2022 — with more than half of them saying they plan to do at least 10% more deals in 2021.
“While economic headwinds could always change the course of investor sentiment, it still looks like the strong momentum for deal activity we saw in 2021 will continue throughout all or most of 2022,”
Long-term care executives also expect 2022 to be a very busy time for deal-making within the industry. A McKnight’s survey this month found 23% of CEOs said they would likely sell some of their skilled nursing holdings in 2022, while 7.7% said they may sell all of their skilled nursing settings or merge with other providers.
The findings highlight the healthcare industry’s resilience for investors, according to KPMG. The firm is also projecting post-acute care, expanding acute care and technology to be three key areas that sees reserving volume.
SNF operators should also consider expanding technology capabilities in order to gain more attention from investigators.
The expectation is that “deals will be focused on supporting the new industry reality, one that is more digital and much more consumer-focused,” said Steve Sapletal, KPMG U.S. healthcare and life sciences deal advisory leader.