United States

Plenty of bright spots in health care private equity deals

ARTICLE  | 

Download article

As more Americans sign up for health insurance as part of the Affordable Care Act (ACA), the health care sector becomes increasingly attractive to private equity investors. This will translate to increased mergers and acquisitions (M&A) activity in health care companies for 2015 and beyond, with some subsectors becoming particularly attractive. The most attractive sectors for M&A at the moment provide alternatives to traditional medical care and include urgent-care clinics and telemedicine, which are more cost-effective and less expensive than visiting a hospital or physician.

Another area of growth outside of the ACA involves baby boomers who are creating new needs in the health care sector related to an aging population. Services including physical therapy, pain treatment, dermatology, ambulatory surgery, personal-emergency response and home health are among the hot health care subsectors.

Despite areas of concern, such as how the federally funded expansion of Medicaid will be paid for by states in the long term once federal money is no longer on the table, there is overall optimism about opportunities for private equity to invest in the health care sector.

AUTHORS


Contact our professionals

Contact us by phone 800.274.3978 or
submit your questions, comments or proposal requests.



Private Equity Subscriptions

Subscribe to Quarterly Industry Spotlights

Subscribe


Events / Webcasts

EVENT

Private equity and the software industry

  • December 14, 2016

IN-PERSON EVENT

RSM’s holiday and networking event

  • December 01, 2016

RECORDED WEBCAST

M&A: What to expect in 2017

  • November 16, 2016

RECORDED WEBCAST

Carried interest and GP estate planning

  • November 15, 2016