McKinsey January 7, 2025
Emily Clark, Liz Wol, Neil Rao

Care delivery organizations and payers have accelerated efforts to expand into fast-growing industry subsegments with ‘transact to build’ M&A. Six actions could bolster their chances of success.

During the past five years, healthcare stakeholders’ expectations of sources of industry growth and profits have shifted toward alternative subsegments. For example, healthcare services and technology (HST) subsegments, which represented about $65 billion in earnings in 2023, will experience an estimated 9 percent CAGR during the next five years. By comparison, payer profit pools (about $55 billion in 2023) will have an estimated 7 percent CAGR during the same period. This implies that by 2028, HST profit pools may be nearly double the size of payer profit pools today.

Companies across the healthcare...

Today's Sponsors

Venturous
Got healthcare questions? Just ask Transcarent

Today's Sponsor

Venturous

 
Topics: Health System / Hospital, Insurance, Mergers & Acquisitions / JV, Payer, Provider, Trends
Radiology provider MedQuest part of deal to acquire 18 imaging centers from 1 of nation’s largest orthopedic groups
Inside New Day Healthcare’s Acquisition Strategy
Radiology provider MedQuest acquires 18 imaging centers from 1 of nation’s largest orthopedic groups
Lantheus completes acquisition of radiopharma firm Evergreen Theragnostics for up to $1B
ATA Action acquires Digital Therapeutics Alliance to launch new coalition

Share This Article