The healthcare M&A market is entering 2026 with a strong sense of strategic momentum, particularly among private equity investors and tech-forward operators. The survey reveals that a majority of healthcare respondents expect the market to strengthen, driven by private equity involvement, technology and AI investment, and a push for efficiency improvements.

 

This optimism is not just theoretical—it’s grounded in operational realities. One respondent noted, “We didn’t do any M&A in the first half of the year, but we are gearing up for a wave to finish the year,” signaling that many firms are preparing to re-enter the market as interest rates stabilize and lending conditions improve. Another emphasized the strategic nature of current dealmaking: “Prioritizing deals that enhance operational efficiency, reduce costs, and improve patient outcomes.” These comments reflect a broader shift toward selective acquisitions that align with long-term value creation.

 

Technology continues to be a major catalyst. AI is increasingly viewed as a differentiator in diagnostics, treatment planning, and virtual care delivery. As one respondent put it, “Trying to find those partners that might be able to be an acquisition that offers AI solutions so that they don’t have to be home-baked.” This underscores a growing trend: buyers are targeting companies that already have scalable tech infrastructure rather than building it from scratch.

Beyond the macro trends, several subsectors within healthcare are emerging as particularly ripe for M&A activity:

• Med Spas and Aesthetic Clinics: These businesses are attractive due to their high-margin, cash-pay models and growing consumer demand. PE firms are increasingly consolidating regional players to build national platforms.
• Urology and Specialty Physician Groups: Urology practices are seeing increased interest due to aging demographics and the potential for outpatient procedural growth. These groups offer recurring revenue and opportunities for operational optimization.
• Ophthalmology: With a mix of elective and essential services, ophthalmology practices are drawing attention for their scalability and resilience. The rise of vision correction procedures and aging-related eye care needs make this a compelling space.
• Behavioral and Mental Health: Consolidation in this area continues, driven by demand for accessible care and the integration of mental health into broader healthcare delivery models.
• General & Specialty Dental: Dental practices continue to attract strong investor interest given their mix of recurring preventive care, elective high-margin procedures, and opportunities for consolidation. Both general dentistry and specialty groups (such as orthodontics, endodontics, and oral surgery) are appealing for their steady cash flow, scalability, and potential to build multi-location platforms.
• Home Health and Post-Acute Care: As care shifts away from hospitals, home health providers are becoming strategic targets, especially those with tech-enabled platforms and strong regional footprints.

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“Healthcare organizations are both interested and hesitant when it comes to AI.” R. Craig Woods Dykema Member

 

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“Healthcare M&A is increasingly being shaped by consumer-driven sectors like aesthetics, med spas, urology, and ophthalmology. From a legal standpoint, these deals require careful structuring—especially in fragmented markets where owner-operator models dominate and compliance with corporate practice of medicine laws is critical. Our clients are targeting platforms with scalable service offerings, recurring revenue, and strong brand equity.” Dean Gould Dykema Member

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