Bass, Berry & Sims attorney Angela Humphreys discussed the role of private equity (PE) investment in the healthcare industry to date in 2021 for an article featured in the Health Care M&A News newsletter. As cited in the article, deal volume is high for this year with 1,581 transactions on the books as of September 1. Angela confirmed saying “there is a lot of pent-up demand right now.”
Referring to deals between PE firms physician practices or smaller healthcare companies, Angela said “In my experience, a physician practice would partner with a PE firm because they bring a lot of administrative expertise, payor contracting strategies and business solutions that enhance financial performance. They bring a lot of business experience to bear, allowing providers to do what they do best and elevate patient care.”
The Biden administration has said it plans to take a closer look at consolidation across markets, with a potential focus in the healthcare section which could impact deals. However, as Angela points out, “There’s always uncertainty in the legislative landscape, but I don’t see PE investments decreasing in the near term.”
The full article, “The Role of Private Equity in Healthcare: PE Firms Continue to Dominate the M&A Market,” was published in the September 2021 edition of Health Care M&A News, a subscription newsletter. For an in-depth review of healthcare deal activity through Q2 2021, read the firm’s Healthcare Transactions Q2 2021 report.