PwC’s Chinese domestic hospital M&A Review and Outlook has charted explosive growth for M&A deals in the healthcare industry. Domestic hospitals remain the most active area of M&A deals, hitting record highs both in value and volume, fuelled by M&A deals in large medical management companies and industrial integration. According to the report, M&A volume in domestic hospitals reached to 106, more than double the figure in 2015, and were valued at RMB16.1 billion in total, representing an increase of 237%. M&A deals in general hospitals, specialised hospitals and medical management groups all grew significantly. M&A deals in general hospitals also rose, albeit less acutely, to reach a value of RMB7.3 billion. With regard to medical management groups, the total transaction value surged rapidly to RMB2.7 billion, reflecting an increase almost 30 times higher than the corresponding figure in 2015. Also of note, the number of transactions in specialty hospitals accounted for more than half of the total number of transactions in 2016, reaching 59 in total, making it among the most active areas for domestic hospital M&A.