VC firms have been funding, and M&A transactions should continue to increase in the health information technology (HIT) sector
“We are gearing up!” I heard this statement and other similar statements from many VC firms when I recently attended “The World Congress Annual Leadership Summit on Mergers & Acquisitions in the Health Care” in Orlando, Florida. Consistently, panelists and attendees at the conference noted that VC firms are funding for M&A transactional opportunities within the heath information technology (or HIT) sector. According to many managing directors who spoke at the conference, there will be many such transactions because many hospitals and health systems throughout the country may need to update their older systems to keep up with emerging technologies that allow for better care for patients. During 2012, many VC firms have been involved in numerous HIT deals. For the remainder of 2012 and beyond, those firms are forecasting a wave of new technology, which should include, in addition to a complete overhaul of computer systems, an expansion of new applications to run on those computer systems in order to better help providers and patients within the healthcare sector. Strong M&A activity within the healthcare provider IT market should continue as a result of solid demand for quick, efficient technologies and lower healthcare costs.