Health IT merger and acquisition deals have increased over the past year, according to a report by investment bank Berkery Noyes, Healthcare IT News reports.
The report examined health care industry activity in 2012 and compared it with data from 2010 and 2011.
According to the report, health IT merger and acquisition deals increased by 11% in 2012 and accounted for 41% of the aggregate transaction volume for the health care industry.
The report also found that from 2011 to 2012, merger and acquisition activity increased by:
- 50% for mobile health applications;
- 37% for revenue cycle management technology;
- 35% for consumer health information tools; and
- 27% for health care business services.
Comments on Report
Thomas O'Connor, managing director at Berkery Noyes, said that more private equity groups are starting to invest in health IT "because health care is in desperate need of technology innovation and fresh ideas and fresh capital."
Jonathan Krieger, managing director at Berkery Noyes, in a statement said, "Health care IT vendors that enable health insurers to improve clinical outcomes while reducing expenditures are increasingly becoming attractive acquisition candidates" (McCann, Healthcare IT News, 1/11).