Healthcare dealmaking shows no signs of slowing down coming off a robust M&A market in 2022. In an effort to keep our clients informed, Hyde Park Capital recently compiled a report featuring key insights for physician practice management M&A, healthcare market transactions and more. Below are some of the highlights.
Top Healthcare Market Observations:
- Healthcare reform, increasing institutional investment in physician practice management, and evolving interests of fellowship-trained physicians will continue to reshape the market in the coming years.
- Demographics – specifically, population growth and aging – continue to be the primary driver increasing the demand for physicians over the next decade. The U.S. population is projected to grow by 10.6% from 328 million to 363 million by 2034, with a projected 42.4% increase in those aged 65 and above.
- The sector has continued to experience a surge in group buyouts and recapitalizations, primarily as a result of the changing competitive landscape created by consolidation by both hospital systems and private equity-backed platforms moving from being local to now regionally and nationally focused. Institutional capital has shifted its focus to specialties that generate high margin ancillary revenue from ambulatory surgery services, imaging, and physical therapy.
- Physician practices continue to take advantage of the opportunity to partner with private equity practices that provide both an optimal cultural fit and a cohesive growth strategy, enabling physician practices to scale significantly more rapidly than they otherwise could independently.
- A study from Avalere this past year found nearly three- quarters of U.S. physicians now work for corporate entities, such as private equity firms, health insurers and hospitals, up from 69% the year before.
- As cloud adoption continues to accelerate, more organizations are being exposed to more risks and require added security.
Recent Healthcare M&A Transactions:
1/6/23 – Urology of Indiana acquired by U.S. Urology Partners
Target Business Description: Provider of urologic care intended to provide complete diagnosis and treatment of all disorders and diseases of the genitourinary system in men, women and children.
12/15/22 – Ophthalmic Physicians Incorporated acquired by Sunvera Group
Target Business Description: Provider of specialty eye care services such as cataract surgery, Lasik vision correction, glaucoma management and retinal disease management.
12/9/22 – Chesen Laster Eye Center acquired by Vision Innovation Partners
Target Business Description: Operator of healthcare centers focused on ophthalmology intended to provide personalized and individualized vision care for patients.
11/28/22 – Excelsior Medical acquired by Rendr
Target Business Description: Operator of a primary care-focused physician group intended to offer primary healthcare services including hematology, oncology, pain management, biopsy and imaging services.
11/23/22 – CSL LEG acquired by OneGI
Target Business Description: Provider of outpatient services intended for treating diseases related to gastroenterology and hepatology.
11/18/22 – Gastroenterology acquired by Gastro Health
Target Business Description: Operator of gastroenterology care practices intended to provide high- quality, community-driven digestive health care and wellness planning.
11/18/22 – Heart and Vascular Care acquired by Cardiovascular Associates of America
Target Business Description: Operator of a healthcare practice that delivers comprehensive cardiovascular care.
11/15/22 – Florida Retina Institute acquired by Retina Consultants of America
Target Business Description: Operator of a vitreoretinal care clinic that offers medical and surgical treatments for retinal detachment, diabetic retinopathy, macular degeneration, laser procedures and macular and vitreous surgery.
Go Deeper with Our Full Report
For more in-depth market observations and a complete transaction history, email Hyde Park Capital’s dedicated bankers committed to healthcare sector coverage: Joshua Mastracci (mastracci@hypeparkcapital.com) and Joshua Paul (jpaul@hydeparkcapital.com). They can email you the full report and answer any questions you might have.
About Hyde Park Capital
Founded in 2000, Hyde Park Capital is a nationally known investment banking firm specializing in mergers and
acquisitions, capital raising and other financial advisory needs for middle-market public and private companies. Headquartered in Tampa, Florida with clients across the globe, our firm is highly skilled in the nuances of complicated capital markets transactions ranging from strategic sales to corporate buyers to majority recap or minority growth equity transactions with financial buyers. Our agile and aggressive team has broad deal experience across multiple industries including technology, healthcare, business services, industrials, consumer and financial services companies.
