While the NASDAQ increased modestly in Q3 2024, up 1.7% compared to Q2 2024 and 37.6% over the trailing 12-month period, healthcare technology segments have underperformed. Pharma IT and virtual care experienced (28.4%) and (38.7%) negative returns, respectively. However, select sectors continue to outperform, such as revenue cycle management (RCM) and DTC telehealth companies.
Elevated costs of borrowing and volatile equity markets have tempered M&A activity in the overall healthcare technology market, but investors continue to compete for high-quality assets that can demonstrate recurring revenue and profitability.
BGL’s Quarterly Healthcare Technology Market Update highlights public company operating metrics and M&A activity in the Provider IT, Payor IT, Pharm IT, Virtual Care, and HC SaaS subsectors. BGL remains committed to informing clients of the current state of the Healthcare Technology market and is always available to discuss appropriate healthcare technology M&A strategies and financing alternatives with its clients and prospects.
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