eHealth M&A deals rise 21% in Q1 2026, driven by medical software and AI startups.

In Q1 2026, eHealth mergers and acquisitions increased by 21% to 63 deals compared to Q4 2025, though down 25% from Q1 2025. Medical practice management software companies led activity, followed by revenue cycle management and telehealth firms. Strategic investors and private equity were highly active, with notable large deals including Danaher’s $9.9 billion acquisition of Masimo and Universal Health Services’ $835 million purchase of Talkspace. The rise in AI-driven startups reflects investor confidence in technology’s role in addressing healthcare challenges.