PwC 2026 Outlook: Health Services M&A Poised for Rebound as AI Becomes Core Driver of Value

PwC’s 2026 Health Services Deals Outlook indicates that after a cooling period in 2025, the M&A landscape is positioned for a rebound in both deal value and volume. The firm suggests the market has reached an inflection point as investors resume activity with greater discipline, focusing on assets that can support efficiency and margin expansion. The report highlights a meaningful shift among private equity sponsors away from reimbursement-dependent businesses and toward AI-enabled software and services that scale without requiring additional labor.

The resurgence reflects a transition from broad growth strategies to targeted transactions shaped by evolving expectations around AI. PwC notes that AI has shifted from a supplementary capability to a core determinant of valuation, influencing investor appetite and competitive positioning. Assets that integrate AI to enhance workforce capacity and improve revenue cycle performance are attracting increased attention. In broader market commentary, Ramzi Ramsey, Senior Managing Director at Blackstone Growth, observed, “Companies who are viewed to benefit from AI tailwinds are seeing outsized multiples and deal activities,” while warning that assets with unclear AI impact “may find themselves with no bid at all.”

Private equity’s repositioning is also shaped by reimbursement dynamics and regulatory uncertainty. Investors are prioritizing sectors with scalability and operational resilience, including behavioral health platforms, ambulatory surgery centers, home infusion, and technology-enabled care delivery models that demonstrate measurable operational improvement. At the same time, health systems and diversified corporations are pursuing carve-outs of non-core functions—such as labs, home health units, and revenue-cycle services—to generate liquidity and streamline operations.

Smaller bolt-on acquisitions are expected to remain a dominant strategy, offering buyers the ability to enhance platform capabilities without the complexity or scrutiny associated with large transformative deals. PwC also notes that the IPO market has begun to reopen, creating improved exit conditions for private equity owners holding mature assets. This environment is driving a sense of urgency as dealmakers move to reposition portfolios ahead of potential regulatory changes, including renewed debate over site-neutral reimbursement.

Overall, PwC’s outlook suggests that 2026 dealmaking will be shaped by rapid deployment of capital, strategic focus on AI-driven value creation, and accelerated portfolio realignment as investors respond to policy, market, and technological pressures.

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