Preparing for the next M&A spree in healthcare


Merger and acquisition activity in the healthcare sector reached a peak in 2021, and while declining in 2022 remained buoyant with high activity. Activity did slow through the first three quarters of 2023, according to Pitchbook’s Q3 2023 Global M&A report, and healthcare organizations and private practices may fairly ask if the post-COVID consolidation spree has come to an end.


To examine this issue, Grant Thornton’s Transaction Advisory team members discuss, in the latest in our Groundbreakers video series, what trends they see in healthcare transactions today and what organizations can do to be best prepared to compete in this economy. In our first video, Transaction Advisory Partner for Healthcare Diligence Lance Beder talks about the general state of the market with Transaction Advisory Partner for Healthcare Diligence Glenn Barenbaum and Healthcare Advisory Partner Adrianne Boylen.


And far from being stagnant, Barenbaum discusses the reasons he thinks 2024 will be a vigorous season for M&A activity in healthcare. Boylen then reviews what founder-owned physician practices can do to optimize their organizations to put themselves in an advantageous position in this active economic environment.


7:16 | Transcript


Beder, Barenbaum and Boylen recount specific experiences with their own clients to illustrate both good and bad examples of diligence work for healthcare organizations. Barenbaum says the key to good diligence planning when considering a transaction is having an agile playbook, where leaders are aligned and don’t get caught in the details, which don’t necessarily impact the “go/no-go” decision. Boylen then follows that with a description of a diligence project she helped organize for a physician practice group. Both Boylen and Barenbaum stress the need to be forward-thinking about their revenue cycle to create a better place of understanding from which to grow.


4:05 | Transcript


Beder continues the discussion about revenue, emphasizing how critical it is for owners to have confidence and insight into their RCM function. The discussion turns to illustrating the challenges in maintaining a reliable and responsive revenue cycle function, where Barenbaum describes how the healthcare  reimbursement landscape is in constant states of change. Boylen follows with a discussion about the difficulty of insourcing or outsourcing particular operations in a physician group and how best to make that determination.


7:13 | Transcript




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