Finance execs see a healthcare market bubble emerging: KPMG/Leavitt Partners survey of finance professionals

Dec. 20, 2017

With several sectors in the Healthcare & Life Sciences industry seen as overvalued, finance executives are concerned that a market bubble is developing.  However, despite bubble concerns, they expect a great deal of investment and M&A activity in health IT and outpatient services, according to a survey by KPMG LLP and Leavitt Partners.

In surveying 265 finance executives at healthcare corporations, investment banks, and private equity firms, KPMG/Leavitt found that 36% see the current state of the healthcare & life sciences market as a “moderate bubble” and an additional 22% see the market as a “bubble likely to burst.”

When asked about overvalued sectors, respondents most frequently cited biotech (71%), specialty physician practice management (67%), behavioral health (63%), and healthcare IT (58%). Medicaid plans (23%) and population health/primary care (17%) were described as the most undervalued.

KPMG and Leavitt Partners will issue their Investment Summary 2018, a report which examines policy and market matters pertaining to healthcare & life sciences and surveyed corporate finance, investment banking and private equity executives with expertise in the sector.

A slight majority of respondents (52%) are projecting the healthcare IT and data subsector to have “a lot” of investment activity in 2018-19, followed by outpatient services (44%) and 33% each for pharma and biotech, and post-acute care services.

PR Newswire has the full release

Sponsored Recommendations

Improving Workplace Safety and Patient Care in Behavioral Health

In 2023, Vail Health enhanced safety in their behavioral health clinic, but the impact went beyond their expectations. Read their case study to see how prioritizing workplace ...

Transforming Hospital Capacity Through Smarter Patient Progression Strategies

Helping patients move seamlessly through every stage of their care, from admission to discharge, is critical to ensuring patient safety, improving outcomes, and optimizing capacity...

Beyond the AI Buzz: How Clinicians Can Leverage AI for Value-Based Success

Watch on-demand to explore the impact of implementing AI in primary care settings to reduce burnout and thrive in value-based care. Including practical takeaways on driving clinician...

Building the Connected Hospital: Bridging Operational Gaps Through Technology

Join industry leaders to explore how advanced technologies like RFID, AI, EMR, and ERP systems are transforming hospitals into connected ecosystems that enhance efficiency, streamline...