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Health-Care Costs Continue Driving Deals for Med-Tech Companies

Corporate--Mergers-AcquisitionsMedical-device companies, under pressure from hospitals and health insurers to keep expenses down, are capitalizing on strong cash flows and the stumbling stock market to beef up cost-controlling technologies that may be critical to maintaining growth.

Three of the biggest makers of medical technology, Medtronic Plc, Abbott Laboratories and Stryker Corp., announced acquisitions Monday that target improved health-care efficiency and quality. Each of the deals bolsters the acquirers’ offerings in ways that address the needs of doctors and hospitals to control spending while reducing errors and waste.

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