In a period of consolidation within any market or sector, there will inevitably be a dramatic evolution of trends related to transaction rationale, deal structures and valuation trends. With the rise in consolidation and transaction activity amongst healthcare provider organizations, such as hospitals, health systems, medical groups and ancillary provider entities, we have undoubtedly witnessed a time of significant evolution within this space. And with the added factor of a major recession within the broader markets, the fluctuation of valuations in healthcare deals have indeed been interesting, to say the least.
For the past three to five years, “clinical integration” has become top of mind for executives in both hospital administration and medical group leadership, and this refers to the growing trend of alignment between medical groups and health systems. Now that we have observed a few years of clinical integration, we have been able to compile enough data that allows