Infographic: Looking Back at 2017 PE Healthcare Buyouts
The number of private equity-related healthcare M&A deals was down in 2017 compared to 2016, but skyrocketing valuations caused deal volume to soar in the same period.
What can healthcare expect going forward? Here are three predictions we have for the year ahead:
1. U.S. for-profit hospitals
will see same-facility EBITDA growth of 2.5 to 3 percent as the movement of patients to lower-cost settings constrain inpatient volumes, while rising labor and other expenses pressure margins.
2. Net prices on branded drugs
in the U.S. will rise despite growing public pressure on pricing.
3. U.S. medical products and device makers
will see EBITDA growth of 3 to 3.5 percent, with new products, synergies from large mergers and acquisitions, and an aging population aiding growth.
Read more in BDO's PErspective In Healthcare infographic here
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