Notable demand growth in specialty pharmacy providers, increased activity in the healthcare real estate market for medical office buildings and upbeat, stable activity in the home health and hospice and behavioral health care sectors powered M&A volume in Q3 2021, according to Irving Levin Associates.

More and more patients are seeking alternatives to facility-based care, turning toward home health services, and anxiety caused by the effects of the COVID-19 pandemic is causing a surge in individuals seeking mental health treatment and services.

"The healthcare M&A market is booming right now, largely driven by private equity activity across a variety of sectors," said Dylan Sammut, editor of Health Care at Irving Levin Associates. "We're seeing the usual interest for physician groups and behavioral health providers, but investors should keep an eye out for deals involving emerging companies, such as specialty pharmacies and chronic care management platforms. Dealmakers tell us that's the next big wave."