Healthcare M&A spending up dramatically in Q1

Expenditures to fund healthcare acquisitions took a dramatic leap during the first quarter of this year compared to the same period in 2010, according to The Health Care M&A Report, courtesy of Connecticut-based tracking firm Irving Levin Associates.

During the first quarter of 2011, $54.4 billion was spent to finance healthcare M&A activity, compared to $32.9 billion during the first quarter of 2010--an increase of 65 percent. However, the number of deals was down 8 percent compared to the same period last year.

Pharmaceutical M&A represented 24 percent of the total dollar value, at $13.5 billion, while deals involving long-term care facilities represented 23 percent, or $12.6 billion.

"The real estate investment trusts have been particularly active in long-term care M&A," Stephen M. Monroe, an Irving Levin partner, said in a statement. "With renewed sources of capital and novel ways to structure their investments at their disposal, buyers of seniors housing facilities have increased their portfolios so they can accommodate the influx of residents and their healthcare needs as the population continues to age and retire."

Hospitals represented 4 percent of the total dollar amount, or just under $2 billion.

For more information:
- check out the Irving Levin data