top of page


Waypoint Private Capital's healthcare practice combines deep industry knowledge and relationships with the best M&A advisory services in the middle market. Waypoint's team is dedicated to understanding the complex industry dynamics and providing superior merger and acquisition advisory services to companies that operate within it.

We specialize in the following sectors:

  • Healthcare Provider and Pharmaceutical Services

  • Facilities and Alternate Site Care

  • Distribution

  • Healthcare IT

  • Healthcare REITS

  • Home Healthcare

  • Outsourcing Services

  • Provider Services

  • Revenue Cycle Management

Current State of the Industry

The healthcare industry will continue to undergo digital transformation in 2024 due to the increasing cost of healthcare, aging Baby Boomers, and labor shortage. 

Here's a brief overview of the current state of the industry:

  1. Impact of COVID-19: The COVID-19 pandemic has been a major influence on the healthcare industry. Hospitals and healthcare systems globally have faced challenges related to the surge in cases, resource allocation, vaccine distribution, and the adoption of telemedicine to minimize in-person interactions.

  2. Digital Transformation: The industry continues to undergo digital transformation, with an increased focus on telehealth services, remote patient monitoring, electronic health records (EHRs), and other technologies aimed at improving patient care, access, and overall efficiency.

  3. Drug Development and Innovation: Advances in pharmaceuticals and biotechnology have led to the development of innovative therapies, including mRNA vaccines like those used for COVID-19. The industry is witnessing breakthroughs in personalized medicine, gene therapy, and immunotherapy.

  4. Focus on Population Health: Healthcare providers are shifting towards a more holistic approach, emphasizing preventive care and population health management. Data analytics and artificial intelligence play a crucial role in identifying trends and managing health outcomes on a larger scale.

  5. Value-Based Care: The industry is moving away from fee-for-service models toward value-based care, which focuses on improving patient outcomes and reducing costs. This shift incentivizes healthcare providers to deliver high-quality care and prioritize preventive measures.

  6. Mental Health Awareness: There is a growing recognition of the importance of mental health, leading to increased awareness, reduced stigma, and expanded access to mental health services. Telepsychiatry and digital mental health platforms have gained prominence.

  7. Healthcare Equity: Efforts to address healthcare disparities and improve equity have gained momentum. This includes initiatives to reduce racial and socioeconomic disparities in healthcare access, treatment, and outcomes.

  8. Healthcare Workforce Challenges: The industry faces challenges related to healthcare workforce shortages, including shortages of nurses, physicians, and other allied health professionals. The COVID-19 pandemic has exacerbated these challenges.

  9. Global Health Preparedness: The pandemic highlighted the need for global health preparedness and cooperation. Efforts to strengthen global health systems, enhance vaccine distribution infrastructure, and improve collaboration among nations are ongoing.

  10. Technological Integration: Healthcare is increasingly integrating technologies such as artificial intelligence, robotics, and wearable devices. These technologies improve diagnostics, treatment options, and patient engagement.

  11. Regulatory Changes: Regulatory changes, including healthcare policy reforms and adjustments to reimbursement models, impact the industry's landscape. These changes may influence how healthcare providers deliver and get reimbursed for services.

  12. Biomedical Research Advances: Ongoing biomedical research continues to contribute to the understanding and treatment of various diseases, driving innovation in healthcare. Breakthroughs in genomics, precision medicine, and biotechnology have far-reaching implications.

Current Trends and Challenges

As of late 2023, the healthcare industry is experiencing several key trends in mergers and acquisitions (M&A):

  1. Consolidation for Market Expansion and Efficiency: There's a continued trend of consolidation in the healthcare sector. Large healthcare providers and organizations are merging to expand their market presence, achieve economies of scale, and improve operational efficiencies. This trend is particularly noticeable among hospitals, clinics, and specialized care facilities.

  2. Technology and Digital Health Focus: M&A activities are increasingly targeting companies in the digital health space. This includes telehealth services, health IT solutions, wearable medical devices, and AI-driven diagnostic tools. The aim is to integrate advanced technologies into traditional healthcare models to improve patient care and operational efficiency.

  3. Vertical Integration: There's a growing trend towards vertical integration, with healthcare companies acquiring businesses along their supply chain. For example, hospital networks might acquire rehabilitation centers or outpatient services, while health insurers are merging with pharmacies and pharmacy benefit managers (PBMs).

  4. Private Equity Involvement: Private equity firms are actively investing in the healthcare sector, attracted by the industry's resilience and long-term growth prospects. These investments are often focused on niche areas with high growth potential, such as outpatient care, home healthcare, and specialized medical services.

  5. Focus on Specialty and Niche Areas: There is a notable interest in specialty sectors within healthcare, such as gene therapy, precision medicine, and rare disease treatments. Companies in these niche areas are attractive targets due to their potential for innovation and high-value treatments.

  6. Regulatory Scrutiny and Compliance: Regulatory considerations remain a critical factor in healthcare M&A. Deals must navigate complex healthcare regulations, antitrust laws, and concerns about patient privacy and data security. This has led to increased due diligence and longer deal timelines.

  7. Cross-Border M&A Activities: Cross-border M&As are ongoing, driven by the desire to enter new markets and access advanced healthcare technologies. However, these deals are subject to geopolitical considerations and regulatory environments of different countries.

  8. Impact of COVID-19 and Public Health Challenges: The pandemic and ongoing public health challenges continue to influence M&A strategies. Companies are seeking to acquire capabilities that address current and future healthcare challenges, such as vaccine development, infectious disease management, and mental health services.

These trends indicate a dynamic healthcare M&A landscape, shaped by technological advancements, regulatory environments, and the ongoing need to adapt to changing healthcare demands and challenges.

bottom of page