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NEWS & INSIGHTS
TOP DEALS
HC REAL ESTATE
HEALTH SYSTEMS
PRIVATE EQUITY
STATISTICS & ANALYSIS
OCTOBER 2026
Q3 Deal Activity Slips Again
Emerging Companies to Watch in Healthcare M&A
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Monthly Highlights For anyone who follows the healthcare M&A market, it’s not difficult to rattle off the names of major players in the industry. But several new investors and companies have emerged in the past few years..... Read more on LevinPro HC
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Private equity pulls back across the industry
he summer has been tough on the healthcare M&A market, with third-quarter deal volume down 12% from the previous quarter, according to preliminary results in our LevinPro HC database. Deal volume totaled only 411 in Q3:26, one of the slowest quarters since the height of the pandemic. The year-over-year decline is even more pronounced, slipping 27% from the 564 deals announced in Q3:25. The slower pace of dealmaking stems from a combination of regulatory, financial and operational pressures, some of which are hitting the most traditionally active sectors. Physician Medical Groups, for example, a sector that usually hits 150 deals a quarter, only broke 100 transactions in the third quarter. Physician groups are popular targets for private equity (PE)-backed platforms, especially through roll-up acquisitions, but state-level oversight has made PE investments trickier nationwide.
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Table of Contents Lead Story.................................................Page 1 Top Stories...............................................Page 3 Health System News........................... Page 10 Private Equity News.............................. Page 11 Healthcare Real Estate News............. Page 11 Top Deals................................................ Page 12 Stat of the Month.................................. Page 14 Monthly Chart........................................ Page 15
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Rehabilitation Realignment Deal volume dips as private equity dominates
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espite increased patient demand and the scalability of rehabilitation and physical therapy assets, Rehabilitation M&A deal volume has slowed. Operational headwinds, such as labor shortages, ongoing Medicare reimbursement cuts and compressed margins have tempered deal activity. According to data captured in the LevinPro HC database, through September, there have been a total of 31 Rehabilitation transactions announced in 2026. This is slightly lower than the 34 Rehabilitation transactions reported in the same time frame of 2025 (47 were announced throughout all of 2025). Since the start of 2026, only two buyers have reported multiple transactions................................................................Read more on LevinPro HC
NEWS & INSIGHTS
States like California and Oregon require long advance notice for healthcare transactions and apply strict scrutiny to the deal terms, tightening their Corporate Practice of Medicine laws. This makes deal negotiations more complex and lengthens timelines, and announcements have fallen as a result. PE firms announced only 52 deals in the Physician Medical Group sector in Q3:26, down from 60 in Q2:26 and 65 in Q3:25. The usual players were still committed, such as Heartland Dental and Golden State Dermatology, but it gave room for non-PE investors to push more into the market, such as Imagen Dental Partners and a bunch of other independent, strategic buyers. Other sectors with a heavy PE focus, such as Home Health & Hospice and Behavioral Health Care, also saw activity drop in the third quarter. Behavioral Health Care, in particular, is in flux right now. Demand for mental health services has never been higher, but uncertainty surrounding reimbursement rates and government funding is enough reason for investors to pause deals. We’ve been seeing a healthy amount of transac-
ISSN#: 2375-7612 Published monthly by: Irving Levin Associates LLC P.O. Box 1117, New Canaan, CT 06840 Phone: 800-248-1668 Fax: 203-846-8300 info@levinassociates.com www.levinassociates.com Editor: Dylan Sammut Associate Editor: Avery Swett Analyst: Kate Humphrey Advertising: Cristina Blazek-Hearty The full, annual subscription includes 51 weekly e-newsletters, 12 monthly issues, four quarterly reports ©2026 Irving Levin Associates, LLC All rights reserved. Reproduction or quotation in whole or part without permission is forbidden. This publication is not a complete analysis of every material fact regarding any company, industry or security. Opinions expressed are subject to change without notice. Statements of fact have been obtained from sources considered reliable but no representation is made as to their completeness or accuracy.
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tions for private practices and talk therapy providers, all of which can lean on revenue streams from patients with commercial payors. Notable deals include Health Catalyst Capital’s purchase of a Midwest psychiatric medical care provider that serves inpatient facilities through a “highly scalable, clinician-led model,” and PEbacked Radial’s purchase of Mindful Health Solutions in San Francisco. The Hospital M&A market took a slight hit in deal volume, with only 14 deals in Q3, compared with 17 in Q2. Operational pressures, reimbursement tailwinds, and regulatory scrutiny are major roadblocks in this industry, especially around antitrust concerns. Adena Health acquired Fairfield Medical Center in September because a Federal Trade Commission (FTC) investigation raised objections to OhioHealth’s acquisition of the facility. According to a news release, the FTC encouraged Fairfield Medical Center leadership to “seek alternative potential buyers,” citing “the competitive risks posed by the previously proposed OhioHealth deal.” The FTC has been aggressive in the Hospital market all year, blocking deals such as Novant Health’s purchase of two hospitals in North Carolina from Community Health Systems. Some large deals did make it over the finish line, however. Atrium Health acquired WakeMed Health & Hospitals in North Carolina in late September, and Intermountain Health purchased the interest in two hospitals from Surgery Partners, Inc. in Idaho for $795 million. Even the technology sectors were not immune to industry pressures. eHealth and Biopharma, for instance, each saw a 38% drop in activity. Volume in Life Sciences R&D remained virtually level, dropping from 21 deals in Q2 to 20 in Q3. However, the latter sector saw some major deal announcements. KKR & Co. Inc. bought Integer Holdings Corporation for $5.7 billion, and McKesson Corporation purchased Precision Medicine Group, LLC for
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www.levinassociates.com/2610webinar $2.25 billion. Contract development and manufacturing organizations (CDMO) were in high demand in Q3, with nine deal announcements. As drug discovery and manufacturing become much more complex, many of those services are now being outsourced, so investors see CDMOs as safe bets in the industry. Overall spending for the third quarter reached $44.1 billion, a 53% decline from the $95.4 billion we tracked in the second quarter. Multiple deals crossed the $10 billion mark in Q2, especially in the Biopharma sector. The largest deal in Q3 was Vertex Pharmaceuticals Incorporated’s $10 billion purchase of Crinetics Pharmaceuticals, a clinical-stage biotechnology company developing novel oral therapeutics for rare endocrine diseases and related tumors. The numbers in this article were updated in the first week of the fourth quarter, so results may change by the time you read this. We’ll have another analysis of the final numbers in our upcoming quarterly report, exclusive to subscribers.
Top Stories of September 2026 Behind the Deal: A Look into Sheridan Capital Partners’ Acquisition of Carolina Components Group Sheridan Capital Partners, a Chicago, Illinois-based healthcare private equity firm, reported that it acquired Carolina Components Group (CCG). CCG supplies ultra-pure components, custom-engineered single-use assemblies and process solutions that support highly regulated biopharmaceutical production environments for more than 250 biopharmaceutical and contract manufacturing customers. The company is based in Durham, North Carolina and was founded in 2020. According to data captured in the LevinPro HC database, this transaction is Sheridan’s fourth acquisition of 2026; previously, it purchased ICANotes and Tres Health, and in September it acquired PtEverywhere. The LevinPro HC team sat down with the Sheridan team HealthCareMandA
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NEWS & INSIGHTS
to provide a behind-the-scenes perspective on the CCG transaction, as well as Sheridan’s overall view of the market's health. When discussing what made CCG stand out, the Sheridan team highlighted CCG’s business model and market position. “Many players in this space are component manufacturers first and tend to design an assembly around the parts they happen to make. CCG is supplier-agnostic, and tailors solutions to its customers’ process, utilizing components best suited to that specific application,” the team said. For its market position, Sheridan noted that CCG has scale and expertise that regional players lack. This includes “more than 100,000 square feet of ISO Class 7 and Class 8 cleanroom and manufacturing space, more than 250 pharmaceutical and [contract development and manufacturing organization] customers and a deep technical bench.” To Sheridan, this combination is unique and difficult to achieve, further setting CCG apart from other organizations. As a private equity group, Sheridan knows there is strong interest in the biopharma space from other private equity firms, reflecting the market's strength. “That being said, within private equity, we believe there is a shorter list of sponsors who have built genuine depth in the market and who pair that with the experience, vision, and resources to drive value,” said Sheridan. “On top of that, the fact that CCG was a founderowned business at a growth inflection point and looking for a partner that could bring real operational resources to the table made CCG a good fit for Sheridan.” In addition to highlighting CCG's attractiveness to Sheridan’s portfolio, the team also discussed the broader biopharmaceutical market and future M&A. Sheridan pointed out several factors driving investors into the space and supporting the market, including demand for and development of pharmaceutical therapies. However, the team emphasized the increasing impor-
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tance of biologics (complex medical treatments made from living organisms). Not only are drug pipelines shifting towards biologics because they are more targeted in their mechanisms, but the “manufacturing processes are adopting single-use technologies, which offer several benefits over traditional, reusable stainless steel” which has made the space even more attractive to investors. Additionally, the Sheridan team said that there’s been “push from the government and drug sponsors to build biologics manufacturing capacity in the United States.” Sheridan highlighted the December 2025 enactment of the BIOSECURE Act, which prohibits federally funded U.S. biotechnology and biotechnology services companies from using services from a company that is associated with a foreign advisory. This act has led to more manufacturing being pulled to American soil. Furthermore, tariff exposure has driven global manufacturers, including those traditionally based in Asia, to enhance their U.S. capabilities. This benefits companies like CCG and Sheridan. “A new biologics plant on U.S. soil is a new U.S. manufacturing site — it hires here, it qualifies as a U.S. supplier, and it needs components, assemblies, and maintenance support. For a business like CCG, we view that as incremental demand rather than competition,” Sheridan said. The team was quick to emphasize that this did not play a major role in the CCG transaction, even though it does benefit the market. While the team is optimistic that M&A will pick up in the coming weeks and the market is robust, Sheridan also pointed out possible headwinds. “Biotech funding conditions, the pace at which announced capacity actually comes online, trade and tariff policy and customer concentration among large sponsors and CDMOs, all remain real variables,” the Sheridan team said, highlighting conditions that may temper M&A deal volume and increase investor wariness. The team also pointed out several market factors that have changed over the last 12-18 months, including that
NEWS & INSIGHTS
shortly after the pandemic, an influx of companies and assets came to market. This has now, for the most part, run its course and could temper deal volume, as investors have already sold the assets they intended to sell. Additionally, Sheridan echoed a sentiment that other industry experts have also said: the deal process is facing heightened scrutiny and deliberation as sellers (and investors) increase “who they include and advance in a sale process.” “We do that at Sheridan by going deep on our subsector theses over many years so we can understand the markets these companies operate in, know what we like and don’t like, and can clearly communicate our vision for where we think the market is going, how a particular company fits into it, and why Sheridan is the right partner to drive value,” the team said.
MyEyeDr. Expands Footprint with Acquisition of EyeCare Partners Optometry Brands National eye care provider MyEyeDr. has entered into a definitive agreement to acquire the optometry division of EyeCare Partners. Financial terms of the agreement were not disclosed. The business includes more than 300 offices across the Clarkson Eyecare, EyeCare Associates, EyeCare Center, Nationwide Vision and The Eye Doctors brands. EyeCare Partners, a leading provider of clinically integrated eye care, was acquired by Partners Group in a $2.2 billion deal in late 2019. It has locations in 18 states, with a heavy concentration in the Midwest and the South. MyEyeDr. has a massive clinical network in its own right, with roughly 1,000 locations across approximately 30 states, and that was before the deal announcement for EyeCare's optometry division. MyEyeDr. was also acquired in a large deal in 2019, when the investment firm Goldman Sachs acquired it for $2.7 billion.
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The deal is expected to close in the fourth quarter of 2026, subject to customary closing conditions and required regulatory approvals. This marks MyEyeDr.'s second acquisition of 2026; in April, the company purchased Lumina Vision Partners, a network of 28 optometry practices across Arizona and Texas.
Webster Equity Partners Acquires Lifecore Biomedical in Take-Private Deal Healthcare-focused private equity firm Webster Equity Partners has entered into a definitive agreement to acquire Lifecore Biomedical, Inc. in a take-private transaction valued at up to $663.7 million, including contingent milestone payments. Headquartered in Chaska, Minnesota, Lifecore Biomedical is a fully integrated contract development and manufacturing organization specializing in the development, fill and finish of complex sterile injectable pharmaceutical products in vials, syringes and cartridges. For full-year fiscal 2025, Lifecore generated $128.9 million in total revenue and $19.5 million in adjusted EBITDA. Under the terms of the agreement, Lifecore common stockholders will receive $6.28 per share in upfront cash at closing, alongside non-tradable contingent value rights worth up to an aggregate $160 million ($9.67 per common equivalent total) based on achieving specified future operational milestones. Upon completion of the merger, Lifecore common stock will be delisted from the Nasdaq stock market, and the company will operate as a private portfolio entity under its current brand and Chaska headquarters. Bourne Capital Partners, L.L.C. served as exclusive M&A advisor, Craig-Hallum Capital Group LLC served as financial advisor, Ballard Spahr LLP served as legal counsel and Zukerman Gore Brandeis & Crossman, LLP acted as legal counsel to the Lifecore Transaction Committee. Morgan Stanley & Co. LLC served as exclusive financial advisor and Goodwin Procter LLP served as legal advisor to Webster Equity Partners.
Following the sale, EyeCare Partners expects to use the proceeds to reduce debt, increase liquidity and strengthen its capital structure.
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Healthcare Realty Trust Grabs MOB & ASC in South Carolina
Charlesbank Capital Partners alongside growth equity investor Warburg Pincus.
On September 16, Healthcare Realty Trust announced a $58 million deal for two healthcare properties in Summerville, South Carolina. The deal includes Summerville Medical Campus, a 100,000-square-foot medical outpatient building (MOB) anchored by the Medical University of South Carolina, and Charleston Surgery Center, a 22,261-square-foot outpatient surgery center fully leased to a joint venture led by SCA Health.
The partnership further expands MB2 Dental's growing practice footprint across Hawaii and the broader Pacific region. Financial terms of the private transaction were not disclosed. This marks MB2 Dental's 14th acquisition of 2026.
Intune Physical Therapy Enters Wisconsin with Clear Lake Deal
Newmark’s Ben Appel, Jay Miele, Justin Shepherd, John Nero, Michael Greeley and Ron Ott advised Hammes, the seller, in this transaction. This is the first deal announced by Healthcare Realty Trust this year.
Intune Physical Therapy announced on September 29 that it has acquired Clear Lake Physical Therapy & Rehab Specialists. The acquisition strengthens Intune’s presence throughout the Midwest.
Together, the assets are 100% leased, with a weightedaverage lease term of approximately seven years and fixed annual rent escalations.
Clear Lake Physical Therapy & Rehab Specialists is a four-clinic physical therapy practice serving western Wisconsin. Founded in 2005, the practice operates clinics across Turtle Lake, Clear Lake, Amery and Prairie Farm.
South Carolina has been a hotspot of activity lately, according to transaction data in our LevinPro HC platform. In August, SG Property Services purchased a 50,000-square-foot MOB anchored by Solaris Health in West Ashley, and over the summer, Four Corners Property Trust acquired five Novant Health urgent care care properties across the state for a total of $14.5 million.
MB2 Dental Expands Footprint with Hawaii Pacific Dental Group Deal Dallas-based MB2 Dental has formed a strategic partnership with Hawaii Pacific Dental Group. M&A advisory firm TUSK Practice Sales served as exclusive financial advisor to Hawaii Pacific Dental Group throughout the transaction. Based in Honolulu, Hawaii, Hawaii Pacific Dental Group provides comprehensive cosmetic, restorative, preventative and family dentistry services. The clinical practice is led by Dr. Rohinton J. Patel, delivering personalized dental care for patients of all ages. MB2 Dental is a dental support organization backing a nationwide network of more than 1,900 affiliated physicians and practice partners across general dentistry, orthodontics, cosmetic care and oral surgery. The organization is backed by middle-market private equity firm
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The company offers care across orthopedics, sports medicine, industrial rehabilitation, pelvic floor therapy, TMJ dysfunction, dry needling and vestibular/balance disorders. Intune Physical Therapy is a leader in outpatient physical therapy, focused on delivering personalized, evidence-based care while supporting clinicians and community-based practices through sustainable growth. Intune is a portfolio company of Highland Ventures, a family-owned, national venture management company. The deal marks Intune’s entry into Wisconsin and expands the company’s footprint to 22 clinics across five states. Financial terms of the deal were not disclosed.
Circle of Life to Acquire Washington Regional Hospice Circle of Life has agreed to acquire Washington Regional Hospice. The deal is expected to close before the end of September 2026. Current patients will receive uninterrupted services through the transaction process. Financial terms were undisclosed.
NEWS & INSIGHTS
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Washington Regional Hospice is a specialized health care program in Northwest Arkansas that provides end-of-life and comfort care for patients facing terminal illnesses. The hospice is currently owned by the Washington Regional Health System.
and Dave Isaacs, provides wheelchair and stretcher van transportation for non-emergency needs such as medical appointments and dialysis. Four Dispatch employees joined America Ambulance, and operations are moving to America Ambulance’s Springfield site.
Based in Springdale, Arkansas, Circle of Life provides hospice, pediatric support, care navigation and personal care throughout four Arkansas counties, as well as four in Oklahoma. It also operates two hospice homes.
America Ambulance is a privately owned Springfield emergency and medical transport provider. Owner Susan Zappa purchased the company from Terry and Faye Kirk in 2018. Locally owned and operated since 1967, it handles 911 calls and medical transport and employs about 70 people.
As part of the transaction, Circle of Life will purchase the Willard Walker Hospice Home and operate it as the company’s third inpatient facility.
Strategic Radiology Acquires East River Medical Imaging in New York Cheshire, Connecticut-based Strategic Radiology has acquired East River Medical Imaging, P.C., expanding its independent practice footprint across New York. East River Medical Imaging operates four practice locations across Manhattan and Westchester County, New York. Staffed by 10 board-certified radiologists, the practice offers comprehensive diagnostic and interventional services, including MRI, CT, cardiac imaging, PET/CT, women's imaging, ultrasound, fluoroscopy and theranostics. Strategic Radiology is a nationwide coalition of independent radiology practices comprising more than 45 member groups and thousands of subspecialized radiologists. It was founded in 2009. The transaction represents Strategic Radiology's fifth practice acquisition completed in 2026, further accelerating its geographic growth and collaborative clinical platform across the Northeast. Financial terms of the private transaction were not disclosed.
America Ambulance Buys Dispatch Medical Transport America Ambulance Service Inc. has acquired Dispatch Medical Transport, a New Berlin, Illinois-based non-emergency medical transportation provider. Dispatch Medical Transport, owned by Dennis Huss
According to Zappa, the acquisition will bring together two companies whose services align well. America Ambulance will retain the DMT name for non-emergency transport services. The deal closed September 1. Financial terms were not disclosed.
Ignitus Recovery Acquires AIM Health Boulder Ignitus Recovery has acquired AIM Health Boulder, a behavioral health program serving young adults, individuals and families in Boulder, Colorado. AIM Health Boulder has been serving the Boulder community for more than 20 years and provides individualized behavioral healthcare with a specialized focus on young adults ages 18–30 navigating mental health and substance use challenges. Ignitus Recovery is a Colorado-based behavioral health organization focused on developing clinically driven, recovery-oriented programs that support individuals and families navigating mental health and substance use disorders. The transition is a strategic investment in expanding access to behavioral healthcare while preserving the clinical legacy AIM Health has built throughout Colorado and nationally. Ignitus Recovery plans to strengthen AIM Health’s existing programming and expand continuity of care through residential treatment, alumni engagement and long-term recovery support. No financial terms were disclosed. There will be no disruption to current services, referral processes or support for clients and families during the transition.
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Terra Behavioral Health Acquires Latitude Recovery Center Temecula, California-based behavioral health platform Terra Behavioral Health has acquired Latitude Recovery Center. Financial terms of the private transaction were not disclosed. Latitude Recovery Center is a standalone addiction and mental health treatment center. The facility provides specialized partial hospitalization and intensive outpatient services for adult patients facing substance use disorders and co-occurring mental health conditions. It is based in Carlsbad, California. Terra Behavioral Health was founded in 2025 and provides medical detoxification, residential care, partial hospitalization, intensive outpatient and virtual mental health services. The deal represents Terra Behavioral Health's first acquisition since its founding, expanding its active clinical capacity by 45 patients at any given time and significantly broadening its regional continuum of care across Southern California.
HopeHealth Steps into the Healthcare M&A Market Over the past month, HopeHealth, a federally-qualified health center (FQHC) in South Carolina, has announced two acquisitions this year, expanding its network across the state. The not-for-profit organization added Eastern Carolina Pediatric Associates, a pediatric practice with two locations, and in late August, it signed an agreement with Rural Health Services, a FQHC based in Aiken, South Carolina.
mary and pediatric care. HopeHealth now has more than 100 providers covering primary care, dental care, chiropractic care, pharmacy services, rheumatology, endocrinology, behavioral health and psychiatry, pain management, substance use treatment and women’s health services. Rural healthcare across the country is facing financial challenges, and some have turned to the M&A market for reprieve. In Pennslyvania, for instance, Berks Community Health Center joined Union Community Care, citing financial headwinds from Medicaid and an inability to collect payments from patients.
Axogen to Acquire BioCircuit Technologies for $200 Million Axogen has entered into a definitive agreement to acquire BioCircuit Technologies, the developer of NerveTape, the first FDA-approved device for sutureless nerve repair. BioCircuit Technologies is a privately held medical device company based in Atlanta, Georgia and founded in 2019. Axogen is a medical technology company focused on the science, development and commercialization of surgical solutions for peripheral nerve regeneration and repair. Axogen’s product portfolio includes Avance (acellular nerve allograft-arwx), Avance Nerve Graft, Axoguard Nerve Connector, Axoguard Nerve Protector, Axoguard HA+ Nerve Protector, Axoguard Nerve Cap and Avive+ Soft Tissue Matrix.
The latter deal still needs final approval from the Health Resources and Services Administration, but if it gets the green light, the unified health center will serve approximately 100,000 patients across 24 clinical sites.
The deal is subject to customary closing conditions, including completion of the spin-out of BioCircuit’s electronics research and development business. BofA Securities is serving as financial advisor to Axogen, and Foley Hoag is serving as legal advisor. Piper Sandler is acting as financial advisor to BioCircuit, and Jones Day as legal advisor.
HopeHealth provides integrated health services for nearly 85,000 patients in areas surrounding Aiken, Clarendon, Florence, Orangeburg and Williamsburg counties. It was founded in 1991 as a grassroots HIV/ AIDS support organization, and was designated as a FQHC in 2007 to expand its services to include pri-
Under the terms of the agreement, Axogen will acquire BioCircuit for total consideration of $200 million in cash at closing, subject to customary adjustments for cash, indebtedness, transaction expenses and net working capital. The transaction is expected to close in the fourth quarter of 2026.
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NEWS & INSIGHTS
Archway Dental Partners Acquires Massachusetts Dental Practice Northeast dental support platform Archway Dental Partners has acquired Veale Dental, expanding its operational presence across Massachusetts. Financial terms of the private transaction were not disclosed. Veale Dental operates two practice locations in South Easton and Dartmouth, Massachusetts. The clinical practice is co-led by Dr. John Veale and Dr. Peter Veale, providing general and preventative dental care services. Archway Dental Partners is a multi-specialty dental support organization backing partnership-focused practices throughout the Northeastern region. The platform is backed by private equity firms Martis Capital and Din Ventures following a July 2025 recapitalization designed to accelerate growth. The deal further expands Archways' growing geographic density and practice footprint across Massachusetts. This is also Archway's third acquisition of 2026; the company completed five deals in 2025.
Hanger and Numotion Plan to Merge, Forming Combined Mobility Platform Hanger, Inc. and Numotion have announced their plan to merge, forming Hanger Numotion. Numotion is a Brentwood, Tennessee-based provider of mobility products and services, helping individuals with disabilities maximize health, independence and participation in everyday life. The company has more than 200 locations and serves more than 500,000 people annually through its family of brands. Numotion partners with clinicians, health plans and leading manufacturers to provide complex rehab technology and other assistive technologies. Hanger provides orthotic and prosthetic (O&P) patient care services, distributes O&P devices and components, manages O&P networks and offers therapeutic solutions in the United States.
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as financial advisors, and Kirkland & Ellis LLP is serving as legal counsel to Hanger. Jefferies LLC is serving as lead financial advisor, and Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal counsel to Numotion. Following close of the transaction, Numotion CEO Mike Swinford will become CEO of the combined company. The deal is structured as a cash acquisition of Numotion by Hanger and is expected to close in the fourth quarter of 2026. Financial terms of the deal were not disclosed.
Veracyte Acquires Convergent Genomics in $150 Million Deal Global diagnostics company Veracyte, Inc. has acquired South San Francisco-based Convergent Genomics in a transaction valued at up to $180 million. Under the terms of the agreement, Veracyte paid $150 million in upfront cash consideration, subject to customary closing adjustments for net working capital, cash, indebtedness and transaction expenses. Convergent Genomics is also eligible to receive up to $30 million in additional cash milestone payments tied to specific UroAmp clinical publications and reimbursement achievements. Convergent Genomics is a precision medicine company integrating genomic sequencing and machine learning models for early non-invasive cancer detection. Its flagship product, the UroAmp platform, is a non-invasive genomic urine test designed to detect, monitor and predict recurrence risk for urothelial cancer. Veracyte leverages broad genomic data, clinical evidence engines and artificial intelligence to commercialize high-performing diagnostic tests. For full-year 2025, Veracyte reported total revenue of $517.1 million and EBITDA of approximately $113.5 million. The acquisition integrates Convergent's UroAmp platform into Veracyte’s commercial diagnostic pipeline, strengthening its urologic cancer diagnostics franchise and advancing its non-invasive early detection capabilities.
Barclays, Citi, Santander and Wells Fargo are acting
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Health System News & Activity September was a busy month for health systems in the healthcare M&A market, with only 14 transactions announced, including five deals in the Hospital sector. In North Carolina, the proposed combination of WakeMed Health & Hospitals and Atrium Health cleared a major hurdle. The Wake County Board of Commissioners has approved amendments to WakeMed’s Articles of Incorporation and its Transfer Agreement with the county, allowing the transaction to move forward into the final phases. Regulatory review is still pending. As part of the amended agreement, Atrium Health committed to invest $2 billion in WakeMed, including investments in facilities, technology, services and workforce. The organizations also established the $150 million Wake County Whole Health Program and increased WakeMed’s minimum charity care commitment from 4.8% to 8% of adjusted revenue. Wake County will continue to appoint a majority of WakeMed’s board members.
tor in the long-term care industry, joined in on the deal, buying the real estate assets. The deal was valued at $10.5 million. Fitzgibbon Hospital filed for Chapter 11 Bankruptcy in April 2026 after experiencing severe financial distress. The hospital held a bidding process over the summer, with offers reaching nearly $15 million. However, Fitzgibbon Hospital picked AMA and Strawberry Fields as the buyers because they agreed to keep hospital operations running. But in early September, Fitzgibbon Hospital sued the buyers, alleging breach of contract, anticipatory breach of contract, tortious interference and promissory estoppel, and asked the court to force them to honor the deal. A week later, it was revealed that the lawsuit was resolved, with AMA officially taking ownership of the hospital. Over in South Carolina, Prisma Health agreed to acquire 36 urgent care centers across the state from seller Novant Health. Financial terms of the deal were not disclosed.
Raleigh, North Carolina-based WakeMed operates a 973-bed system that includes three full-service hospitals, a mental health, eight emergency departments and more than 175 physician and physical therapy practice offices. According to its most recent financial report, the system generated $2.475 billion in net patient revenue and $223.6 million in EBITDA in fiscal year 2025.
The 36 sites, which currently operate under the Doctor's Care brand, provide walk-in immediate care, diagnostic testing and occupational health services throughout the state. Following the expected completion of the transaction in November 2026, all 36 facilities will transition and rebrand to operate as Prisma Health Urgent Care.
Atrium Health is part of Advocate Health, which operates 69 hospitals and more than 1,000 care locations across eight states. WakeMed and Atrium Health will remain independent organizations while the proposed combination undergoes regulatory review.
The strategic transaction enables Novant Health to realign its regional asset mix while significantly strengthening Prisma Health's outpatient primary and urgent care access network across South Carolina.
Juniper Advisory was retained by a special committee of WakeMed’s Board to assess the merits of the partnership with Atrium. The U.S. Bankruptcy Court for the Western District of Missouri approved a deal for American Medical Administrators, Inc. (AMA) to take over the management and operations of Fitzgibbon Hospital, a not-for-profit 501(c) (3) short-term acute care hospital with more than 40 beds. Strawberry Fields REIT LLC, a prolific inves-
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And in South Dakota, Sanford Health took over North Memorial Health Care, a two-hospital system with more than $1.1 billion in net patient revenue. The deal includes a $100 million investment in North Memorial's Robbinsdale Hospital and $500 million to expand Maple Grove Hospital. The terms also include an agreement that Sanford Health will maintain core services at Robbinsdale Hospital for 10 years to preserve its critical role as a Level I Trauma Center and safety-net hospital.
HEALTHCARE REAL ESTATE
Private Equity News & Activity Private equity (PE) activity in healthcare M&A declined in September, with PE buyers and/or their portfolio companies involved in 40 deals out of 121 total healthcare transactions, representing 33% of overall volume. This marks a drop from August’s 49 PE deals out of 136 and is well below September 2025, which recorded 64 PE deals out of 206 total. As usual, Physician Medical Group (PMG) remained the most active sector for PE buyers in September. There were 12 PE transactions announced during the month out of 29 total PMG deals. The largest deal by physician count was Tristela Capital Partners’ acquisition of Pediatric Group of Acadiana and its affiliated management services organization, Independent Physician Services. Life Sciences R&D ranked second with nine PE deal announcements. The contract development and manufacturing organization (CDMO) specialty was the most active subsector with four deals, and it also held the month’s largest PE deal by purchase price: Webster Equity Partners’ acquisition of Lifecore Biomedical for $663.7 million. Lifecore Biomedical is a fully integrated CDMO focused on the development, fill and finish of sterile injectable pharmaceutical products in syringes, vials and cartridges, including complex formulations. Medical Outpatient Building (MOB) and Other Services each recorded four PE deals. Woodside Health was behind three of the MOB transactions, acquiring two properties in Surprise, Arizona, and one in Lake Nona, Florida. Other Services activity was spread across the occupational health, infusion services, health clinics and medical physics specialties. In addition to the Lifecore Biomedical transaction, two other deals disclosed purchase prices during the month. G Square Healthcare Private Equity LLP acquired Valtecne S.p.A. for $66.3 million, and the Spectrum Eye Care Portfolio was sold to an Ohio-based family office for $8.1 million. Overall, September was a quieter month for PE in healthcare M&A. We will continue tracking activity closely as the year moves into the fourth quarter.
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Healthcare Real Estate News & Activity Medical Outpatient Building (MOB) M&A deal volume remained steady in September 2026, totaling 19 transactions, up slightly from the 17 reported in August 2026. However, it is a notable decrease from the 27 announced in September 2025. Through the end of September 2026, 171 MOB transactions have been reported since the start of 2026. On September 16, the FED announced an interest rate raise by 25 basis points to a target range of 3.75%-4%. While this increase has not yet affected M&A, it could widen the bid-ask spread and slow deals as sellers wait for more favorable conditions. While deal volume rose slightly in a month-over-month analysis, total disclosed square footage declined, continuing a pattern that began in July. In September, total square footage totaled more than 1.3 million square feet across 28 facilities, down from 1.34 million across 29 facilities in August 2026, and even lower than the 2.52 million square feet across 109 facilities reported in September 2025. There were four transactions with more than 100,000 disclosed square feet in September 2026. The largest was Inova Health System’s acquisition of Willow Oaks, a Fairfax, Virginia MOB that totals 383,000 square feet. The MOB sold for $97.5 million, or $254.569 per square foot. Disclosed spending for September exceeded August's $225.9 million across nine deals. Although, it is a decline from the $526.8 million announced in September 2025. Other buyers that were active in September include Montecito Medical Real Estate, Anchor Health Properties and Healthcare Realty Trust. Real estate investment firms continued to dominate buyer types with six deal announcements, up from five in August. Health systems also had a strong showing in September with three announcements.
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TOP DEALS
Top Deals September 2026 TARGET
LISTING
Dominion Hospital Private Falls Church, VA
Behavioral Health Care ACQUIRER
LISTING
DATE
PRICE
Hill Valley Healthcare Woodmere, NY
Private
9/2/2026
$25,000,000
In Brief: Dominion Hospital is a freestanding behavioral health hospital in Falls Church, Virginia, serving children, adolescents and adults. It offers inpatient and outpatient services, including programs focused on eating disorders and trauma.
Top Deals September 2026 TARGET
LISTING
Convergent Genomics Private South San Francisco, CA
Laboratories, MRI and Dialysis ACQUIRER
LISTING
DATE
PRICE
Veracyte, Inc. South San Francisco, CA
NASDAQ: VCYT
9/14/2026
$150,000,000
In Brief: Convergent Genomics is a precision medicine company that combines advances in genomics and machine learning to detect cancer early and non-invasively. One of its lead products is the UroAmp platform, which is a non-invasive genomic urine test that can reliably detect, monitor and predict the risk of urothelial cancer.
Top Deals September 2026
Life Sciences R&D
TARGET
LISTING
ACQUIRER
LISTING
DATE
PRICE
Lifecore Biomedical, Inc. Chaska, MN
NASDAQ: LCBM
Webster Equity Partners Waltham, MA
Private
9/28/2026
$663,700,000
In Brief: Lifecore Biomedical, Inc. is a fully integrated contract development and manufacturing organization that offers highly differentiated capabilities in the development, fill and finish of sterile injectable pharmaceutical products in syringes, vials and cartridges, including complex formulations.
Top Deals September 2026 TARGET
LISTING
Willow Oaks medical property N/A Fairfax, VA
Medical Outpatient Building ACQUIRER
LISTING
DATE
PRICE
Inova Health System Falls Church, VA
Not-for-Profit
9/23/2026
$97,500,000
In Brief: The Willow Oaks medical outpatient building (MOB) portfolio is based in Fairfax, Virginia. The MOB comprises 383,000 square feet and is anchored by Inova with 8.2 years WALT remaining on the lease.
Top Deals September 2026 TARGET
LISTING
ITM Isotope Technologies Munich Private Munich, Germany
Biotechnology & Pharmaceuticals ACQUIRER
LISTING
DATE
PRICE
Telix Pharmaceuticals North Melbourne, Australia
ASX: TLX
9/21/2026
$1,650,000,000
In Brief: ITM Isotope Technologies Munich SE is a global leader in radioisotope production and radiopharmaceutical development. Founded in 2004, ITM is a private company with a commercial-scale radioisotope manufacturing and global distribution network spanning more than 65 countries.
Top Deals September 2026 TARGET
Medical Devices
LISTING
ACQUIRER
LISTING
DATE
PRICE
BioCircuit Technologies, Inc. Private Atlanta, GA
Axogen, Inc. Alachua, FL
NASDAQ: AXGN
9/10/2026
$200,000,000
In Brief: BioCircuit Technologies, Inc. is a privately held medical device company and developer of NerveTape™, the first FDA-approved device for sutureless nerve repair. The company is based in Atlanta, Georgia and was founded in 2019.
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STATISTICS & ANALYSIS
Top 10 States for Healthcare M&A in 2026*
Source: LevinPro HC, September 2026 *=Data is through 9/30/2026
Editor's Commentary: In our LevinPro HC Stat of the Month, we're highlighting the top states for healthcare M&A activity. For years, Texas, California and Florida have been hot spots of healthcare M&A activity, and in 2026, this has been no different. The main draw is that they are the three most populous states in the United States, collectively representing nearly 90 million residents (more than 26% of the U.S. population). Other factors unique to each state also attract investors; Florida, for example, is experiencing an aging-population boom with high Medicare Advantage enrollment. Texas, by contrast, is much more friendly to corporate healthcare investments, which has helped it become
14
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the top destination for healthcare M&A this year, with 65 deals. Ohio has also seen a significant amount of activity this year, with 41 deals. The state is home to many health systems vying for market dominance, especially in the major metro areas like Cleveland and Columbus. Central Ohio, fueled by an influx of investments from tech and biopharmaceuticals, is one of the fastestgrowing regions in the Midwest. Systems like OhioHealth and Nationwide Children’s are rapidly scaling suburban facilities, micro-hospitals
VOLUME 32 | ISSUE 10
STATISTICS & ANALYSIS
Technology
Services
Deal Volume, September 2026 vs. August 2026 and September 2025 Sector
Sept. 2026
Share
Aug. 2026
Change
Sept. 2025
Change
Behavioral Health Care
7
6%
3
133%
8
-13%
Healthcare Staffing
0
0%
2
-100%
2
-100%
Home Health & Hospice
6
5%
5
20%
7
-14%
Hospitals
6
5%
5
20%
10
-40%
Labs, MRI and Dialysis
4
3%
4
0%
9
-56%
Managed Care
0
0%
0
—
3
-100%
Medical Outpatient Building
19
16%
17
12%
27
-30%
Outpatient Surgery Center
1
1%
8
-88%
2
-50%
Physician Medical Groups
28
23%
35
-20%
51
-45%
Rehabilitation
2
2%
3
-33%
7
-71%
Specialty Pharmacy
1
1%
2
-50%
1
0%
Other Services
14
12%
17
-18%
12
17%
Biotech & Pharma
9
7%
12
-25%
18
-50%
eHealth
8
7%
13
-38%
35
-77%
Life Science R&D
12
10%
7
71%
5
140%
Medical Devices
4
3%
3
33%
9
-56%
121
100%
136
-11%
206
-41%
Grand Total
Technology
Services
Deal Value*, September 2026 vs. August 2026 and September 2025 Sector
Sept. 2026
Share
Aug. 2026
Change
Sept. 2025
Change
Behavioral Health Care
$25.0
1%
$0.0
—
$10.5
138%
Healthcare Staffing
$0.0
0%
$0.0
—
$0.0
—
Home Health & Hospice
$25.0
1%
$0.0
—
$0.0
—
Hospitals
$10.5
0%
$0.0
—
$29.2
-64%
Labs, MRI and Dialysis
$150.0
4%
$0.0
—
$32.0
368%
Managed Care
$0.0
0%
$0.0
—
$250.0
-100%
Medical Outpatient Building
$295.4
8%
$225.9
31%
$526.8
-44%
Outpatient Surgery Center
$0.0
0%
$54.0
-100.00%
$0.0
—
Physician Medical Groups
$0.0
0%
$39.1
-100%
$1,580.0
-100%
Rehabilitation
$0.0
0%
$48.8
-100%
$70.3
-100%
Specialty Pharmacy
$0.0
0%
$21.3
-100%
$41.5
-100%
Other Services
$16.2
0%
$16.6
-2%
$100.0
-84%
$2,549.6
72%
$4,966.0
-49%
$21,915.0
-88%
eHealth
$1.5
0%
$755.0
-100%
$2,760.0
-100%
Life Science R&D
$0.0
0%
$0.0
—
$0.0
—
Medical Devices
$445.9
13%
$0.0
—
$1,397.9
-68%
$3,519.1
100%
$6,126.7
-43%
$28,713.2
-88%
Biotech & Pharma
Grand Total Source: LevinPro HC, October 2026 *=in millions
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