ECG’s Healthcare Mergers and Acquisitions (M&A) Update for Q2 of 2024 is now available! This edition includes a spotlight on regulatory scrutiny, with information on California’s Office of Health Care Affordability (OHCA). 

Here are three key takeaways:

• There were 400 announced US transactions in Q2 2024, compared to 377 in the prior quarter.
  • Notable transactions from the quarter include the following:

• California’s OHCA was established in June 2022, with all transactions expected to close on or after April 1, 2024, being subject to review.
  • Through OHCA, regulators have advance review authority for healthcare-related transactions in California that meet a specific set of parameters. Parties with transactions  that qualify for review must file a notice of material change transaction to OHCA at least 90 days prior to transaction close.
• Announced US healthcare private equity deals increased from 136 deals in Q1 to 160 deals in Q2 2024.
  • Private equity in healthcare has come under greater scrutiny due to Steward Health Care’s recent bankruptcy announcement, driven in part by the sale-leaseback agreements completed by former private equity owner Cerberus. However, this increased scrutiny did not lead to an absolute decline in transaction volume from the previous quarter. 

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_{Edited by: Matt Maslin}