Callum Turcan, Research Analyst and M&A Writer - Corum Group
HealthTech M&A deal volumes remain healthy, with strong demand from strategic and financial acquirers. In the US, spending on healthcare reached $4.5 trillion in 2022, and demographic trends, such as increases in the cohort of those 65 and older, indicate that healthcare expenditures should remain robust over the coming years.
Buyers are sitting on trillions they must deploy and are eager to grow their exposure in the HealthTech sector, particularly firms developing innovative solutions that improve patient outcomes and reduce costs. Six trends driving M&A activity in the HealthTech sector in 2024 include remote patient monitoring, telehealth, compliance, digital therapeutics, AI and mental health.
Starting with our first trend, remote patient monitoring. Healthcare providers are using this technology to ensure the safety of patients. Illustrating this trend, Carevive Systems, a cancer care management solution developer that includes remote patient monitoring, was acquired by Health Catalyst in June 2024 to gain new insights into patient-reported outcomes and oncology registry data.
Pivoting to our second trend, telehealth. Doctors and nurses are using virtual distribution networks to cater to a larger patient population more efficiently. Highlighting this trend, HealthPoint Plus, a provider of subscription-based telehealth services, merged with EcoPlus in July 2024 to better focus on advancing its activities in the health and wellness space.
Shifting to our third trend, compliance. The healthcare industry is one of the world’s most tightly regulated markets, and companies need to remain in strict compliance to avoid fines. Showcasing this trend, Hatch Compliance, a developer of compliance and risk management software, was sold to Kipu Health in September 2024 to enhance its offerings for behavioral health organizations.
Moving on to our fourth trend, digital therapeutics. HealthTech software that intends to treat or alleviate a medical condition is in high demand. Highlighting this trend, Together Senior Health, a digital health platform operator, was pocketed by Linus Health in July 2024 to help detect and slow cognitive declines in patients through personalized intervention.
Our fifth trend is AI. Companies are using this technology to support healthcare professionals during surgeries. Illustrating this trend, OrthoGrid Systems, a developer of AI-powered surgical guidance systems for total hip replacement, was bought by Zimmer Biomet in August 2024 to strengthen its market share in hip replacement procedures.
Finally, our sixth trend is mental health. The mental well-being of employees and students has risen in importance in recent years. Showcasing this trend, CuraLinc Healthcare, a provider of employee assistance, student and workforce mental health programs, secured a strategic investment from Lightyear Capital in August 2024 to support its next phase of growth.
Companies that map to any of these six trends are seeing strong demand from buyers that are eager to increase their exposure to the HealthTech sector. The proliferation of AI is having a powerful impact on the sector as companies are developing new ways to diagnose, manage and treat medical conditions.