Healthcare Services Sector Update - Early Winter 2021

The S&P Healthcare Services Index increased by 1.5% over the last month, compared to the S&P 500 Index, which increased 5.7% over the same period.

Over the past month:

• The sectors that experienced the most growth were Commercial Managed Care (up 16.5%), Telemedicine (up 13.5%) and Government Managed care (up 13.5%).
• The sectors that experienced the largest decline were Healthcare Staffing (down 12.3%), Rehabilitation (down 11.7%) and Dialysis Services (down 7.4%).
• The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 3.56x and 15.3x, respectively.

The sectors with the highest valuation multiples include:

• Contract Research Organizations (4.59x LTM revenue, 25.3x LTM EBITDA)
• Assisted/Independent Living (1.94x LTM revenue, 24.2x LTM EBITDA)
• HCIT (4.19x LTM revenue, 23.5x LTM EBITDA)
• Consumer Directed Health/Wellness (4.88x LTM revenue, 22.4x LTM EBITDA)