Three structural forces are driving the market opportunity in employer-sponsored healthcare: growth in self-insured coverage, rising specialty drug costs, and higher cost-sharing for employees. Together, these trends expand the market for employer technology while increasing urgency around cost containment, according to the latest industry report released by the Healthcare Technology investment banking team at Brown Gibbons Lang & Company.
Self-Insured Coverage is Expanding
Self-insured employers already make up the largest share of commercial coverage and are expected to grow through 2030. Employer healthcare spending exceeded $700 billion in 2021, about 18% of total U.S. healthcare spend. Costs continue to rise faster than wages, with self-funding plan premiums growing faster than fully insured plans over the past five years.
Rising Costs of Specialty Drug Spend
Specialty drug spend is one of the fastest-growing cost drivers. Per-member specialty drug costs have risen sharply and are projected to continue increasing. These drugs now account for about half of the total drug spend, despite being used by a small portion of members.
Higher Cost Sharing for Employees
Employee cost responsibility continues to rise. Deductibles and out-of-pocket costs have increased steadily, and enrollment in high-deductible plans has nearly doubled over the past decade. This makes employees more sensitive to pricing and access, increasing demand for navigation and transparency tools.
BGL’s Healthcare Technology investment banking team has extensive experience serving public, private, and sponsor-backed companies. Our team has specialized expertise healthcare technology M&A within software as a service (“SaaS”) and digital solutions and is able to serve these clients holistically through its collaboration across BGL’s Healthcare & Life Sciences and Technology verticals. Our team has domain expertise across core subsectors, including consumer health, hybrid delivery, provider- and payor-focused IT, pharma IT, and virtual care/telehealth.
Employer-sponsored healthcare, especially among self-insured employers, has changed significantly over the past several years. What was once a patchwork of vendors and point solutions is now moving toward more integrated software platforms. These platforms are designed to manage healthcare costs as an ongoing operational function, not just a reporting exercise. Steady medical cost inflation, growing use of specialty drugs, higher out-of-pocket costs for employees, and increasing frustration with managing too many vendors within benefits organizations are all contributing factors driving this shift, according to a new report released by the Healthcare Technologyinvestment banking team at Brown Gibbons Lang & Company (BGL).
From an investment and strategy standpoint, one of the most important features of this shift is how these platforms are being built. Most are not developed organically from a single product roadmap. Instead, they are assembled over time through targeted acquisitions. These acquisitions bring together analytics, navigation, engagement, pharmacy management, and payment integrity into a single operating system. While large, high-profile mergers often get the most attention, the more telling market indicator is the steady flow of smaller, often undisclosed deals that fill capability gaps and shorten the time it takes to deliver value to employers.
BGL’s Healthcare Technology investment banking team has extensive experience serving public, private, and sponsor-backed companies. Our team has specialized expertise healthcare technology M&A within software as a service (“SaaS”) and digital solutions and is able to serve these clients holistically through its collaboration across BGL’s Healthcare & Life Sciences and Technology verticals. Our team has domain expertise across core subsectors, including consumer health, hybrid delivery, provider- and payor-focused IT, pharma IT, and virtual care/telehealth.
BGL’s Head of Technology Scott Mattson, who also leads the firm’s Transportation & Mobility Software investment banking team, recently shared his insights with Commercial Carrier Journal on how technology is shaping the trucking industry in the first half of 2026.
In the article, Scott discusses how easing economic pressures could boost trucking volumes and reignite investment in transportation technology. He also examines how rising M&A activity may usher in a new wave of solutions and what AI’s growing role in driving efficiencies means for the sector.
To read more of Scott’s insights on the transportation technology investment landscape, visit the Commercial Carrier Journal website (subscription required).
Employer-sponsored healthcare is shifting from fragmented point solutions to integrated technology platforms that drive real-time cost management and operational efficiency, according to a new industry report released by the Healthcare Technology investment banking team from Brown Gibbons Lang & Company (BGL). Steady medical cost inflation, growing use of specialty drugs, higher out-of-pocket costs for employees, and increasing frustration with managing too many vendors within benefits organizations are all contributing factors driving this shift.
Bill Watts, BGL Managing Director: “Accelerating convergence in employer healthcare technology, driven by employers’ desire to reduce vendor complexity, is reshaping investment strategies and driving healthcare technology M&A. Our research shows these dynamics create value for private equity investors, especially in integrated solutions offering tighter integration and real-time cost visibility.”
Inside the report, BGL examines the role of targeted M&A in assembling comprehensive solutions and how employers’ push to reduce vendor complexity is accelerating market convergence and shaping investment strategies across the sector.
Key takeaways include:
Which employer healthcare subsectors present the most attractive value creation opportunities for private equity investors
Why cost containment has become the central organizing principle behind employer health technology platforms and acquisition strategies
What is driving continued convergence across employer healthcare technology as benefits teams seek fewer vendors, tighter integration, and real-time insight into costs
Led by Bill Watts & Jamie Arnold, BGL’s Healthcare Technology investment banking team has extensive experience serving public, private, and sponsor-backed companies. Our team has specialized expertise within software as a service (“SaaS”) and digital solutions and is able to serve these clients holistically through its collaboration across BGL’s Healthcare & Life Sciences and Technology verticals. Our team has domain expertise across core subsectors, including consumer health, hybrid delivery, provider- and payor-focused IT, pharma IT, and virtual care/telehealth.
Manifest 2026: The Future of Supply Chain & Logistics unites the global supply chain executives, logistics service providers, innovators, and investors at the forefront of logistics tech and end-to-end supply chain.
BGL’s Head of Technology Scott Mattson and Managing Directors Michael Magruder and Peter Finn will be attending the conference and available to discuss the upcoming opportunities in supply chain and logistics technology and the trends shaping M&A and capital raising activity in 2026.
BGL’s Technology investment banking team expertise spans a broad range of subsectors, including transportation management, industrial technology, planning, warehousing and fulfillment, global trade, fleet management, telematics, and visibility solutions. Our team is well-versed in partnering with clients in a range of business models to articulate their differentiated technology solutions.
BGL Managing Director Jason Myler, who leads the firm’s Restaurant & Retail and HospitalityTechnology investment banking teams, is a featured contributor for Restaurant TechnologyNews, with a piece entitled, “How Restaurant Tech M&A Is Regaining Momentum — and What It Means for 2026.”
In the article, Jason examines how the tailwinds that will drive consolidation in the industry are shaping M&A activity and creating opportunities for strategic growth.
To read all of Jason’s insights on the current restaurant technology landscape, including what will be key for operators to drive profitability and growth in 2026, visit the Restaurant Technology News website.
Brown Gibbons Lang & Company (BGL), a leading independent investment bank and financial advisory firm, has relocated its New York office to 777 Third Avenue.
The new Midtown Manhattan location is reflective of BGL’s growth and expanding presence in one of the financial services industry’s largest hubs.
Effram Kaplan and Andrew Petryk, Co-Chief Executive Officers for BGL, stated, “Continued growth across BGL’s sector and product offerings has made the New York office an increasingly important base for the firm. We can more effectively deliver cross-sector and product collaboration to the corporate and institutional capital markets.”
The relocation follows a period of significant growth for BGL. Since 2023, the firm has increased its sector coverage via senior banker additions across all its verticals and broadened its product capabilities beyond traditional majority buyout to more expansive capital markets capabilities, including debt and non-control equity advisory.
Learn more about BGL’s investment banking capabilities and our sector expertisehere.
In the article, Scott discusses why he expects supply chain software M&A to pick up in 2026, noting that major logistics providers look to augment slowing growth via deals.
To read more of Scott’s insights on the supply chain investment landscape, visit the Axios Pro website (subscription required).
BGL Managing Director Michael Magruder, who co-leads the firm’s Supply Chain Softwareinvestment banking practice, is quoted in Mergers & Acquisitions as part of its 2026 M&A Outlook series, sharing his outlook on the impact of artificial intelligence on dealmaking and the mega-trends reshaping the M&A market.
In the series, Michael highlights how AI-driven information advantages are accelerating capital allocation among investors and the implications of AI in reshaping technology stacks and workflows.
BGL’s Supply Chain Software investment banking team has a 20-year track record of advising the world’s most innovative companies, solving the complex challenges of logistics and supply chain operations. Our clients benefit from our enduring relationships and deep industry insights, which span the entirety of the supply chain and logistics continuum, including planning, execution, visibility, and management.
The 2026 BGSA Supply Chain Conference is one of the most exclusive and foremost C-level conferences in the transportation, logistics, and supply chain sector. This one-of-a-kind event is designed to bring together top industry leaders from all segments of the supply chain and provides a candid setting where CEOs and leaders can privately network and explore ideas with their peers.
BGL’s Head of Technology Scott Mattson and Managing Director Michael Magruder will be attending the conference and available to discuss the upcoming opportunities in supply chain and logistics technology and the trends shaping M&A and capital raising activity in 2026.
BGL’s Technology investment banking team expertise spans a broad range of subsectors, including transportation management, industrial technology, planning, warehousing and fulfillment, global trade, fleet management, telematics, and visibility solutions. Our team is well-versed in partnering with clients in a range of business models to articulate their differentiated technology solutions.
