Long-term care facilities dominated healthcare transactions compared to other sectors in terms of deal volume in July, according to a new update.
Since the beginning of the year, the sector racked up 121 reported transactions, putting it at the top of the healthcare deals list. Facilities were involved in 18 transactions last month, along with 6 additional in the home care and hospice space, according to data published by Bloomberg BNA on Thursday. That put long-term care ahead of other sectors, including physician practices, hospitals and healthcare IT.
The trend is showing no signs of slowing down, Gary Herschman, an attorney with the firm Epstein Becker & Green, told Bloomberg.
“As the baby boomers move into their 60s and 70s, investment continues in the long-term care sector, which expects a corresponding growth in demand for services in the near future,” Herschman said.
The volume of long-term care deals so far this year also disproves some of the fears surrounding Medicaid providers in the wake of President Donald Trump’s election, stemming from “trepidation around Medicaid in general,” Michael Mahoney, an analyst for Provident Healthcare Partners LLC, told Bloomberg.
Healthcare IT and software deals followed long-term care in the 2017 year to date list, at 108 transactions. Physician practices and services rounded out the top three with 80 deals.