There is another exciting year ahead for the long-term care (LTC) pharmacy M&A market. Before we look into the crystal ball, let’s recap the prior year and catch up on current trends. First, consolidation continued among payers and providers. When it will end, nobody knows. What we do know is that companies are seeking to lower costs and minimize risk through this vertical integration. Next, we saw an increased appetite for businesses providing services outside of skilled nursing, particularly behavioral health and assisted living. There are caveats to completing these deals (more on that later) but this demand offers new opportunity for pharmacies and their shareholders, not previously available. Last, technology continued to play a critical role in the LTC pharmacy market. Companies increasingly sought new technology solutions to reduce costs, consolidate data, enhance value, and improve patient outcomes. Now that we are up to speed, let’s turn our eyes forward to likely 2019 trends.
