business
Mergers and acquisitions on upswing in health IT
NEWS IN BRIEF — Posted Feb. 4, 2013
Merger and acquisition activity involving health information technology companies increased in 2012 as more private equity groups took an interest in the sector.
According to a report published by investment bank Berkery Noyes, merger and acquisition deals increased by 11% in 2012 and accounted for 41% of the aggregate transaction volume for the health care industry. Activity in the mobile health application subsector rose 50%.
Ongoing implementation of the Affordable Care Act has resulted in a larger focus on value-based reimbursement, said Jonathan Krieger, managing director at Berkery Noyes, in a statement. “Health care IT vendors that enable health insurers to improve clinical outcomes while reducing expenditures are increasingly becoming attractive acquisition candidates.”
