Specialty Healthcare Services M&A Update

RESOURCE HIGHLIGHTS

• In Q3, the S&P Healthcare Services Select Industry Index decreased 2.6% and was outperformed by a 2.0% increase in the S&P 500 over the same period.
• The median EV/EBITDA multiple for reported private equity deals in the Specialty Healthcare Services sector increased to 15.4x through YTD Q3 2026 from 11.5x in 2025.
• M&A deal volume in the sector increased 44.0% in Q3 to 265 deals from 184 deals in Q2, and increased 11.3% from 238 deals in Q3 of the prior year.
• North America was the most active region in Q3 with 147 deals. The largest deal in Q3 was WCAS’s $3.9 billion acquisition of Select Medical, a Pennsylvania-based postacute care provider.
• Total capital invested in M&A transactions increased 9.6% in Q3 to $9.3B from $8.5B in Q2, driven by several large transactions, including WCAS’s $3.9B acquisition of Select Medical, mentioned above, and Intermountain Health’s $1.4B acquisition of Idaho Falls Community Hospital.