The patient care sector is being challenged, as payors – especially governments – seek to maintain high standards of healthcare whilst containing costs to affordable levels. In Europe, where the vast majority of hospitals are run by central or local governments, universities, or charities, there is move towards private care that is gathering momentum. It is estimated that the global Patient Care sector in total has a turnover of more than $3 trillion – equivalent to approximately 8% of global GDP. Although most of the Patient Care sector is in public hands, the proportion under private ownership is growing rapidly, especially in Europe.
During 2010, the value of M&A transactions in the Patient Care sector exceeded $100bn. Over the period, disclosed transaction values for 589 deals in the US alone amounted to over US$83bn according to DealSearchOnline.com. Whilst the US remains dominant in M & A activity and large buyouts, European transactions have risen strongly. In Europe, the continuing process of healthcare privatisation continues to attract interest from private equity players and strategic buyers, particularly in acute care. The business arguments are that in emerging private healthcare markets, ownership of hospital facilities provides not only a revenue stream but also a mechanism for controlling other areas of care through equipment and service specification.