After two volatile years marked by regulatory uncertainty and uneven deal values, health services mergers and acquisitions could pick up in 2026, according to a Dec. 16 report from PwC.
Here are 10 trends to know from the report:
1. Deal volume held steady throughout the year, generally in the mid-260s to low 300s per quarter, even as pricing moved around more.
2. Deal value dropped sharply from $19 billion in the fourth quarter of 2024 to $7 billion in the third quarter of 2025, then climbed to $22 billion in the fourth quarter of 2025 to date.
3. PwC said concerns about reimbursement policy and regulatory scrutiny are still weighing on valuations and slowing deal timelines, especially in policy-sensitive areas.
4. Assets coming to market in 2026 are expected to more often have steady cash flow, clearer reimbursement outlooks and proven operations.
5. Buyers are leaning toward smaller deals and carve-outs that show consistent performance and avoid heavy regulatory exposure.
6. Private equity is increasingly looking at software and services that support care delivery, including telehealth, revenue cycle tools and workforce solutions.
7. In drug distribution, strategic buyers are pursuing partnerships and acquisitions of physician practices, aiming to improve coordination and access.
8. Carve-outs of non-core businesses, such as labs, home health and revenue-cycle units, are rising as sellers refocus and buyers look for standalone growth opportunities.
9. PwC said public markets may become a more realistic exit option in 2026, helped by stronger equity valuations and a more favorable interest-rate outlook.
10 Even with a rebound, the report predicts buyers will continue to demand clearer paths to profitability and lower policy risk.
