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Cost containment software reshapes employer healthcare platforms and healthcare technology M&A activity

Employer-sponsored healthcare is shifting from fragmented point solutions to integrated technology platforms that drive real-time cost management and operational efficiency, according to a new industry report released by the Healthcare Technology investment banking team from Brown Gibbons Lang & Company (BGL). Steady medical cost inflation, growing use of specialty drugs, higher out-of-pocket costs for employees, and increasing frustration with managing too many vendors within benefits organizations are all contributing factors driving this shift.

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Bill Watts, BGL Managing Director: "Accelerating convergence in employer healthcare technology, driven by employers' desire to reduce vendor complexity, is reshaping investment strategies and driving healthcare technology M&A. Our research shows these dynamics create value for private equity investors, especially in integrated solutions offering tighter integration and real-time cost visibility."

Inside the report, BGL examines the role of targeted M&A in assembling comprehensive solutions and how employers’ push to reduce vendor complexity is accelerating market convergence and shaping investment strategies across the sector.

Key takeaways include:

  • Which employer healthcare subsectors present the most attractive value creation opportunities for private equity investors
  • Why cost containment has become the central organizing principle behind employer health technology platforms and acquisition strategies
  • What is driving continued convergence across employer healthcare technology as benefits teams seek fewer vendors, tighter integration, and real-time insight into costs

Led by Bill Watts & Jamie Arnold, BGL’s Healthcare Technology investment banking team has extensive experience serving public, private, and sponsor-backed companies. Our team has specialized expertise within software as a service (“SaaS”) and digital solutions and is able to serve these clients holistically through its collaboration across BGL’s Healthcare & Life Sciences and Technology verticals. Our team has domain expertise across core subsectors, including consumer health, hybrid delivery, provider- and payor-focused IT, pharma IT, and virtual care/telehealth.

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