With $60B+ deals this year, what's in store for private equity in the future?

A report in Medical Economics explored private equity investment in healthcare, finding that the investment isn't likely to stop.

According to a report from Medical Group Management Association, there was $15 billion in PE deals in 2017, $22.3 billion in deals in 2018 and more than $60 billion in deals in 2019. The total number of deals, too, increased from 200 in 2018 to an expected 250 to 300 deals in 2019.

While ophthalmology, orthopedics, dermatology, urology and gastroenterology have already experienced PE investment, analysts believe most specialties, including primary care, could see some sort of investment.

Medical Economics said PE firms target platforms with around 12 physicians and up to four sites, with EBITDA between $5 million and $10 million. PE firms find these practices using their in-house business development departments.

PE practices typically look to sell for a profit within three to five years of their initial investment.

Read the entire article here.

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