Activity in sectors such as physician medical groups and other services drove much of the volume in the third quarter, with 112 and 140 deals, respectively. Among other sectors:

Demand for health care real estate, such as medical outpatient buildings and properties, continues to drive high deal volume in other services.
Activity in the behavioral health care and laboratories and MRI and dialysis sectors decreased 28% and 32% from the previous quarter, respectively.
Home health and hospice saw the largest decline, with 18 deals announced during the third quarter, representing a 40% decrease from the previous quarter.
Health care services sectors remained sluggish in the third quarter because of ongoing financial pressures in the industry.

Health technology markets maintained stable activity, with a 1% increase over the second quarter of 2024 but 5% below the third quarter of 2023.
Although the biotechnology sector saw a decline of 28%, activity in the health technology sectors was driven mostly by pharmaceutical deals, which increased by 36% to 19 deals.
The hospital sector saw a slight increase, with 21 deal announcements. The largest hospital deal of the third quarter by price was Tenet Healthcare Corporation's $910 million cash sale of its majority stake in Brookwood Baptist Health to Orlando Health, which has been scaling up its presence across several markets throughout the year.

"While challenges remain in areas like behavioral health and home health, we're seeing resilient demand for physician medical groups and health care real estate, which continue to fuel deal flow," Swettt said. "Looking ahead, the lower- and middle-market segments, driven by private equity and larger health systems, are likely to remain active as they navigate ongoing industry consolidation."

Instant Insights /

Health care M&A volume remained stable in third quarter of 2024

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