Healthcare Growth Partners is excited to release its January 2026 Health IT Market Review, offering a detailed analysis of the trends and dynamics shaping the industry. From M&A valuations and funding trends to regulatory developments, this report explores the major forces poised to shape the Health IT landscape going forward.
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Key Takeaways:
- Regulation is increasingly segmenting between value-based and consumer markets: The healthcare regulatory agenda is increasingly bifurcated between institutional value-based care and consumer-directed health.
- So far, AI is proving additive, not existential, for incumbents: With access to proprietary data, established customer relationships, and embedded workflows, incumbents appear to face a manageable transition risk in this phase of AI adoption and, in some settings, may hold a structural advantage.
- Health IT deal activity rebounded strongly in 2025: Growth equity recovered sharply, M&A activity reached all-time highs, and buyout volume, while modestly below 2024, remained near historical peaks. Valuations trended above pre-COVID levels, particularly for high-quality assets.
- Macro conditions have improved meaningfully: Inflation has moderated to roughly 2.6%, the Fed Funds rate has declined from the 5.25–5.50% range to 3.50–3.75%, and economic growth has remained resilient, with GDP expanding at 4.3% in Q3 2025 and forecasts calling anywhere between 2-5% growth in Q4 (adjusted for the shutdown)
