The State of Healthcare M&A: Trends, Opportunities and Risks

In this combined episode of the Becker's Healthcare Podcast and Becker Private Equity in Business Podcast, Scott Becker hosts Lucas Bressio and Emily Rieses from VMG Health to discuss the current state of healthcare mergers and acquisitions. Despite a perception of a slow year, over 1,000 healthcare M&A deals closed in 2025, driven by both survival strategies and growth ambitions. The conversation highlights a growing alignment between buyers and sellers, particularly in valuations, with earn-out structures becoming more common to bridge gaps in expectations. Top-tier assets are re-entering the market as economic uncertainty has eased. The discussion also explores the role of institutional culture, with both guests emphasizing the strong values shared by Texas A&M and VMG Health, which prioritize service, integrity, and client trust. Looking ahead, opportunities are emerging in the maturing private equity portfolio landscape, with exits expected via strategic buyers, IPOs, or sum-of-the-parts approaches. Key trends include a shift toward outpatient services, population health, preventive care, and innovative models like concierge medicine and food-as-medicine. However, regulatory risks—such as HR1’s potential impact on Medicaid and state-level scrutiny of private equity in healthcare—remain significant concerns. The episode concludes with a forward-looking vision of transforming the U.S. healthcare system from 'sick care' to 'health care' through prevention and long-term wellness. Key takeaways include: 1) Valuation alignment is improving through earn-outs and shared economic expectations; 2) Outpatient and ambulatory services are the primary growth verticals; 3) Maturing private equity portfolios are creating new exit opportunities; 4) Preventive care and wellness models are gaining traction; 5) Regulatory scrutiny and site neutrality rules will shape future deal dynamics; 6) Cultural alignment in talent acquisition—especially from institutions like Texas A&M and Notre Dame—drives organizational success; 7) The shift from inpatient to outpatient care is accelerating; 8) Strategic buyers are increasingly interested in platform expansion through acquisitions.