By Dana Jacoby

Will We See Any Groundbreaking Deals in 2023?

The healthcare industry is no stranger to change, and 2023 promises to be no exception. So as we move toward the third and fourth quarters, here are our predictions for things that could impact healthcare mergers, acquisitions, and disruptions in the medical industry.

Many Companies Holding Off

We predict that bigger deals will go into longer diligence periods until interest rates decline. Many healthcare organizations are eager to merge or acquire other companies, but higher interest rates make these deals lengthier and riskier. Therefore, for high-level sales in the $500M+ range, expect more cautious activity in the M&A space until rates become more favorable.


Affiliation agreements from small medical facilities are all the rage in 2023. With increasing pressure to improve quality and reduce costs, many smaller organizations seek partnerships with name-brand hospitals. These affiliation agreements can provide access to resources and expertise that other facilities might not have.

A Good Year For Outpatient Services

A stable third-party payer system and inelastic demand will support substantial revenues for outpatient services. With baby boomers aging, expect the market for outpatient services to remain strong. Additionally, a stable third-party payer system will help ensure that providers receive reimbursement for these services.

The Public’s Disadvantage is the Private’s Gain

Many medical experts claim that funding could travel into the private sector due to public market uncertainty. As general access healthcare market volatility continues, investors may increasingly look to the private sector for healthcare investment opportunities. Doing so could lead to increased funding for healthcare startups and other private companies.

Return of Value-Based Healthcare

Value-based care is back at the front of the industry. With a focus on improving quality and reducing costs, these healthcare models offer payers and providers the chance to share in implementing risk-taking models and realizing the benefits of shared savings. Expect the money to follow this trend over the next few years.

Stay Updated on Healthcare Mergers and Acquisitions

Vector Medical Group believes these factors will influence healthcare mergers, acquisitions, and disruptions in the industry. From cautious M&A activity to increased funding for private healthcare companies, it should be an exciting year for the medical services industry. Vector Medical Group helps healthcare organizations stay ahead of these medical trends and adapt to new challenges and opportunities to position themselves for success in 2023 and beyond.