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.”