Healthcare M&A projected to grow in 2026

Healthcare M&A projected to grow in 2026 M&A landscape will regain strength as organizations improve in quality and leverage technology to attract buyers, PwC says. Mergers & Acquisitions By Susan Morse , Executive Editor | December 16, 2025 | 11:12 AM Photo: John Fedele/Getty Images Health services deal value and volume will grow in 2026 as organizations improve in quality and leverage technology to attract buyers, according to a new PwC report.As in other areas of healthcare, AI appears to be making the difference. Attractive buys include companies offering AI-based telehealth platforms, tools for revenue cycle management, workforce optimization, utilization management and member engagement. “Investors will increasingly treat AI as a core driver of margin expansion and top-line growth — not a bolt-on enhancement — shifting valuation premiums toward platforms with proven operations leveraging real data,” the report said.Deals will be made for both strategic and financial reasons with buyers benefiting from more favorable market conditions, PwC said. High-growth sectors include ambulatory surgery centers, home-infusion services and behavioral health platforms. These have perceived scalability and favorable reimbursement. The primary headwind is an uncertain regulatory and reimbursement environment.“In health services, first movers who pair policy foresight with AI-driven execution will set the pace for the sector’s deals in 2026,” said Daniel Farrell, PwC, Health Services Deals Leader.WHY THIS MATTERSThe coming year will likely mark an inflection point for health services M&A, PwC said. “The market is poised for a return to velocity. Tech-enabled care, behavioral health, and physician specialty platforms could see some of the most aggressive capital flows in years as acquirers look to scale models that can grow without adding labor.”Competition for high-quality assets is likely to intensify, the report said. The winners in 2026 will likely be the investors who move fast, deploy capital and embed AI to reshape portfolios before policy and pricing shifts.Both strategic acquirers and private equity buyers will continue to favor acquiring smaller companies (bolt-ons) and selling portions of the business (carve-outs) that demonstrate consistent earnings. They’ll avoid areas prone to shifting regulations and reimbursement. Trends from 2025 that are expected to continue: Private equity investors will continue their shift away from reimbursement and regulatory exposure; Drug distribution companies will seek partnerships or acquisitions with physician practices; A surge in carveouts of non-core assets from health systems as sellers seek liquidity and strategic focus.THE LARGER TRENDOverall deal value is declining in the third quarter of 2025 amid continued regulatory headwinds and rate pressure. This year saw a slight cooling in overall deal activity. The health services M&A landscape in 2026 is projected to bounce back in both value and volume. Email the writer: [email protected] Topic: Business Intelligence, Mergers & Acquisitions, Operations, Strategic Planning