Here’s what you should know:
1. While dermatology and dentistry have been market mainstays, the private equity market has seen an uptick in partnerships between firms and orthopedic and ophthalmology practices.
2. MHT Partners’ Patrick Krause wrote the healthcare industry is attractive to investors because of the amount of high profit procedures. Investors place premium valuations on orthopedic and ophthalmology practices.
3. Mr. Krause points to a recent investment by Frazier Healthcare Partners and Princeton Ventures into Phoenix-based The CORE Institute, as an example. CORE Institute’s Chief Executive Officer David Jacofsky, MD, told peHUB,”Musculoskeletal care is the fastest growing segment of inpatient hospital admissions in the U.S. This exponential growth is expected to continue for the foreseeable future.”
4. The details of the investment were not disclosed, but Mr. Krause believes orthopedic and ophthalmology practices could be worth 10 times more than recent dermatology practice valuations.
5. Mr. Krause compared ASCs to big-box retail chains; by offering consumers surgeries at a cheaper cost, he believes ASCs are one of the most attractive aspects of both specialties.
6. Mr. Krause added many practices view private equity investors as the key to remaining independent, making them more inclined to partner.
More articles on transactions/valuations:
Legacy Health dives into expansion plans, including potential Portland ASC
Nobilis Q2 revenue up 29.2%, per case revenue tops $17k: 5 key points
Wisconsin insurance company raises $10k to support new facility with ASC: 3 highlights
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.