Report: M&A Activity Ripe in Health IT Industry | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Report: M&A Activity Ripe in Health IT Industry

June 26, 2015
by Rajiv Leventhal
| Reprints
Merger and acquisition (M&A) activity in the healthcare IT segment improved 33 percent on a year-to-year basis, according to new research from New York City-based investment bank Berkery Noyes.

The health IT segment accounted for almost half of the industry’s aggregate deal volume, and strategic acquirers comprised 70 percent of the segment’s volume, according to the research. Hospital IT providers are also looking to engage ambulatory providers and care settings to coordinate care and reduce expenditures, the researchers said in a white paper.

What’s more, healthcare providers are increasingly adopting software solutions (i.e. EHRs, RCM, PM, billing) to maximize efficiencies amidst a declining reimbursement rate environment, increased consumer financial responsibilities (high deductible health plans), and a more complex claims coding process (ICD-10). Notable deals in the segment included: the Cognizant/TriZetto deal; Cerner Corporations’ acquisition of Siemens Health Services; Summit Partners’ acquisition of Ability Network; and Conifer Health Solutions’ acquisition of SPi Healthcare.

As for trends in the segment, greater attention is being placed on encouraging patient adherence to treatment plans through the use of mobile applications. Mobile healthcare may also assist in improving the results of patient reported outcomes (PROs) and promoting health and wellness. At the same time, pharmaceutical companies are looking for the ability to better analyze and leverage their data, with the aim of incentivizing patient adherence and increasing revenue, the researchers said.

“Healthcare IT companies continue to develop unique software solutions to solve pain points along the health continuum,” the paper concluded. Many enjoy high growth rates and cash flow margins, low capital expenditures and defensible positions in their marketplace. Strategic buyers are flush with cash and looking to jump start revenue growth or move into adjacent markets.”

Get the latest information on Health IT and attend other valuable sessions at this two-day Summit providing healthcare leaders with educational content, insightful debate and dialogue on the future of healthcare and technology.

Learn More

Topics

News

Study will Leverage Connecticut HIE to Help Prevent Suicides

A new study will aim to leverage CTHealthLink, a physician-led health information exchange (HIE) in Connecticut, to help identify the factors leading to suicide and to ultimately help prevent those deaths.

Duke Health First to Achieve HIMSS Stage 7 Rating in Analytics

North Carolina-based Duke Health has become the first U.S. healthcare institution to be awarded the highest honor for analytic capabilities by HIMSS Analytics.

NIH Releases First Dataset from Adolescent Brain Development Study

The National Institutes of Health (NIH) announced the release of the first dataset from the Adolescent Brain Cognitive Development (ABCD) study, which will enable scientists to conduct research on the many factors that influence brain, cognitive, social, and emotional development.

Boston Children's Accelerates Data-Driven Approach to Clinical Research

In an effort to bring a more data-driven approach to clinical research, Boston Children’s Hospital has joined the TriNetX global health research network.

Paper Records, Films Most Common Type of Healthcare Data Breach, Study Finds

Despite the high level of hospital adoption of electronic health records and federal incentives to do so, paper and films were the most frequent location of breached data in hospitals, according to a recent study.

AHA Appoints Senior Advisor for Cybersecurity and Risk

The American Hospital Association (AHA) has announced that John Riggi has joined the association as senior advisor for cybersecurity and risk.