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Trends and Indicators in the Changing Health Care Marketplace
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Section 5: Structure of the Health Care Marketplace
Pages: 1 2 3 4 5 6 7 8 9 10 11 12  < previous
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Exhibit 5.12: Health Care Mergers and Acquisitions, 1994-2003
The number of mergers and acquisitions of health care services companies rose rapidly from 1994 to 1997, more than doubling from 536 to 1,284. But as stock prices took a downward turn and merged entities confronted management difficulties, the number of health care company mergers fell, dropping to their lowest level (392) in 2003, then increasing in 2004 (425) and 2005 (525). Home health care and long term care activity, in particular, increased in 2005. Mergers and acquisitions of health care technology companies increased from 2000-2002 for all but E-health and have fluctuated since 2002.

 

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

SERVICES

 

Behavioral Health

27

47

35

61

53

46

33

17

13

11

20

24

Home Health Care

58

76

136

137

83

63

32

28

37

25

29

72

Hospitals

92

128

163

197

137

109

84

83

56

38

59

53

Laboratories: MRI, Dialysis

56

60

91

113

94

55

61

66

50

36

38

39

Long Term Care

26

73

130

114

149

80

47

53

71

98

86

128

Managed Care

39

27

59

57

62

66

46

30

33

28

37

30

Physician Medical Groups

90

135

265

311

264

139

70

39

36

24

36

34

Rehabilitation

50

66

62

80

46

28

11

16

16

18

10

9

Other

98

62

150

214

256

148

101

109

156

114

110

136

TECHNOLOGY

 

Biotechnology

N/A

52

85

96

127

96

113

E-Health

71

86

59

53

49

60

Medical Devices

76

120

175

164

133

141

Pharmaceuticals

41

87

147

170

171

128

 

Notes: Includes publicly announced merger and acquisition transactions. N/A = data not collected prior to 2000. Managed Care includes, for example, HMOs, PPOs, and dental and vision plans. Other includes such companies as institutional pharmacies, dental care practices, outpatient surgery centers, etc. E-Health includes companies providing internet-related services, such as online medical record storage systems.

Source: Irving Levin Associates, Inc., Mergers and Acquisitions Data Base, personal communications, 1/23/04 and 1/31/06. See http://www.levinassociates.com/m&adatabase/faqs.htm for definitions of terms.

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Section 5: Structure of the Health Care Marketplace
Pages: 1 2 3 4 5 6 7 8 9 10 11 12  < previous
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Abstract
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Trends and Indicators in the Changing Health Care Marketplace
Information provided by the Health Care Marketplace Project.

Publication Number: 7031
Information Updated: 03/15/06

 

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