The S&P Healthcare Services Index decreased by 5.8% over the last month, while the S&P 500 increased by 1.8% over the same period. 

Over the past month, the best performing sectors were Hospital Vendors (up 10.1%), Behavioral Health (up 5.6%) and Contract Research Orgs (up 4.0%). The sectors experiencing the most decline were Pharmacy Management (down 20.5%), Providers – Other (down 14.8%) and Specialty Managed Care (down 8.0%)

The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.27x and 14.3x respectively.

The sectors with the highest valuation multiples include:

  • HCIT (4.14x LTM Revenue, 32.6x LTM EBITDA)
  • Home Health / Hospice (1.91x LTM Revenue, 19.9x LTM EBITDA)
  • Consumer Directed Health / Wellness (4.60x LTM Revenue, 19.3x LTM EBITDA)
  • Healthcare REITS (12.18x LTM Revenue, 18.0x LTM EBITDA)

Read the report for more detail on sector activity.

 Healthcare Services Sector Update March 2019

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