Investment Rating - The report does not explicitly state an investment rating for the healthcare IT industry Core Insights - Healthcare IT private equity (PE) deal flow remained strong in H2 2025, with deal counts up 15.9% and deal values up 14.3% compared to the prior year [3] - The largest transaction in H2 2025 was a $2.6 billion leveraged buyout (LBO) of Premier, while the second-largest was a $1.1 billion LBO of AGS Health at an 18.3x 2025 EV/EBITDA multiple [3][9] - The analytics and value-based care segment saw significant growth, with deal count increasing by 109.1% in 2025 [3] - Valuation levels moderated in H2 2025, with EV/EBITDA multiples in the high teens to low 20s, consistent with 2024 levels [3] Summary by Sections Key Takeaways - Healthcare IT PE deal count increased by 2.1% in 2025, with a total transaction value of $43.4 billion, a 23.9% increase from 2024 [5] - Exit activity was strong in 2025, with exit count up 7.7% and exit transaction value up 48%, although it moderated in H2 2025 [5] PE Update - AI-related deals slowed in H2 2025, with a focus on large-scale buyouts rather than pure-play AI investments [8] - The report highlights the transition of CommonSpirit Health to AI-native capabilities, indicating potential shifts in revenue cycle management (RCM) vendor valuations [9] Noteworthy Transactions - The report identifies several significant deals in H2 2025, including the acquisition of UST HealthProof for $1.3 billion and Performant Healthcare for approximately $670 million [16]

Market Overview - The global hospital information systems market is projected to reach USD 116.75 billion by 2030 from USD 63.80 billion in 2024, at a CAGR of 10.6% from 2024 to 2030 [2][9]. Market Drivers - Growth is driven by government initiatives such as financial incentives from Medicare and Medicaid, including the NY Medicaid EHR Incentive Program offering up to USD 63,750 over six years, which accelerates EHR implementation [4]. - Regulatory mandates like HIPAA, GDPR, and the Information Blocking Rule necessitate robust data security measures, prompting continuous system upgrades [4]. - The 2024-2030 Federal Health IT Strategy is expanding broadband and connected technology in underserved areas, fostering sustained market growth [4]. Market Segmentation - The telehealth and telemedicine segment dominated the market in 2023, driven by the need to mitigate hospital-acquired infections and manage chronic diseases [6]. - The Asia Pacific region is expected to experience the highest growth due to improved healthcare infrastructure, technology adoption, and government support [8]. Competitive Landscape - Leading companies in the hospital information systems market include Epic Systems Corporation, GE HealthCare, UnitedHealth Group, Medical Information Technology, Veradigm LLC, and others [5][14]. Industry Trends - Increasing adoption of Electronic Health Records (EHRs) in hospitals and clinics is a significant trend [11]. - There is a rising emphasis on collaborative care and integrating data analytics into HIS to boost patient care and operational efficiency [11]. - The integration of AI and cloud-based solutions is becoming more prevalent, enhancing patient care and operational capabilities [11].