ECG’s Healthcare Mergers and Acquisitions (M&A) Update for Q2 of 2024 is now available! This edition includes a spotlight on regulatory scrutiny, with information on California’s Office of Health Care Affordability (OHCA).
Here are three key takeaways:
- There were 400 announced US transactions in Q2 2024, compared to 377 in the prior quarter.
- Notable transactions from the quarter include the following:
- California’s OHCA was established in June 2022, with all transactions expected to close on or after April 1, 2024, being subject to review.
- Through OHCA, regulators have advance review authority for healthcare-related transactions in California that meet a specific set of parameters. Parties with transactions that qualify for review must file a notice of material change transaction to OHCA at least 90 days prior to transaction close.
- Announced US healthcare private equity deals increased from 136 deals in Q1 to 160 deals in Q2 2024.
- Private equity in healthcare has come under greater scrutiny due to Steward Health Care’s recent bankruptcy announcement, driven in part by the sale-leaseback agreements completed by former private equity owner Cerberus. However, this increased scrutiny did not lead to an absolute decline in transaction volume from the previous quarter.
We want to hear from you.
Connect with ECG’s Mergers, Acquisitions, and Transactions team to share your thoughts or concerns.
Edited by: Matt Maslin
Published July 9, 2024
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