McKinsey January 7, 2025
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...
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