Bass, Berry & Sims attorney Angela Humphreys provided insight for an article outlining the impact of private equity (PE) investment in the healthcare industry. As the article reports, PE activity accounted for around 32% of the mergers and acquisitions activity in all healthcare sectors since 2013. PE spending in healthcare for 2019 is already nearing the 2018 total. According to research, the hot investment sectors for PE investment include physician medial groups, behavioral healthcare, long-term care, and home health and hospice.
“The [activity] will continue in the near term, probably the next three to five years,” Angela predicted. “Private equity obviously has a lot of capital to deploy and healthcare is a natural place for PE to look for investments.”
Angela went on to say that “Multiples have been strong and will continue to hold. Some think they’ve peaked, but with CMS’s initiatives around value-based care, a lot of PE firms may see that as an opportunity.”
The full article, “Private Equity Firms Are Reshaping Health Care Services,” was published in the August 2019 issue of Health Care M&A News (the full article is available by clicking on the title).