Despite the challenges providers faced during Covid‑19, healthcare deal value rose in 2020. As providers focused on maintaining solvency, M&A activity initially slowed due to lost revenue from halted elective surgeries and the inability to control pandemic‑related costs. However, a modest rebound in the second half of the year contributed to a 28 percent increase in deal value compared with the previous year. Looking ahead, provider M&A is expected to accelerate, with deals increasingly focused on consolidating administrative services and expanding alternative care sites to reduce costs and improve patient outcomes. Private equity is expected to play a major role, using significant available capital to invest in and scale provider platforms.

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