Although private equity deal activity in the ASC industry has remained relatively consistent over the last six years, investors have changed their spending patterns in response to the changing scope of care, according to a report by healthcare finance company VMG Health.
Its "Healthcare M&A Report," published March 21, analyzed private equity trends, mergers and acquisitions and investment strategies from fiscal year 2022.
High-acuity procedures are migrating to ASCs and facilities are adding service lines to increase case volume and revenue has benefited patients and management — and investors have noticed.
VMG's report found that investors are putting their money more intentionally into practices. Private equity interest is tied to their physician practice portfolio offerings, so private equity groups have been eyeing gastroenterology, orthopedics and cardiology care.
With these types of investments, private equity groups capture more revenue related to the specialty physician practices as a whole, rather than only the group's ASCs.
The report also found that investors' interest in ASCs beyond owning physician practice portfolios has also increased in the last year. Overall, the ASC industry saw five trackable private equity deals in the first nine months of the year — a mix of platform, add-on and growth investments.