A flaming hot start — 10 insights into PE investment in GI in 2021 

The new year has coincided with a rapid increase in private equity investment in the gastroenterology space. 

The rumors that Miami-based Gastro Health could be for sale have dominated early conversations in the space. Becker's ASC Review spoke with several analysts exploring the rumors further to examine what a deal could look like.

There have been six deals so far:

1. January 2021: Dallas-based GI Alliance made the first deals of 2021, partnering with Cleburne (Texas) Endoscopy Center, Oak Lawn, Ill.-based GI Associates of Chicago and Dallas-based Digestive Health Associates of Texas.

2. Pinnacle GI Partners partnered with Lansing, Mich.-based providers Michigan Gastroenterology Institute and Capitol Colorectal Surgery on Jan. 8, just slightly over a month after its formation.

3. Investing firm Assured Healthcare Partners partnered with West Long Branch, N.J.-based Allied Digestive Health, it announced Jan. 13.

4. February 2021: Gastro Health acquired a practice in Hollywood, Fla., expanding its presence in the Fort Lauderdale, Fla., area. 

5. Pinnacle GI Partners has deepened its roots in Michigan, partnering with East Lansing, Mich.-based Digestive Health Institute.

6. US Digestive Health partnered with four gastroenterology practices: Pottstown (Pa.) Ambulatory Center, Brandywine Valley Endoscopy in Downingtown, Pa., The Center for GI Health in Sellersville, Pa., and Hillmont Gastroenterology in Flourtown, Pa. 

Here are some other notes on what could be in store:

1. GI's other platforms, United Digestive, PE Practice Solutions, the Peak Gastroenterology and Varsity Healthcare venture, and One GI, have not yet made deals. Becker's spoke with United Digestive and One GI about their plans for the year. 

2. The newest platform, Assured Healthcare and Allied Digestive Health, offered Becker's insights into how their platform will compete. 

3. After a booming end to 2020, the industry is expected to carry that momentum through 2021 and going forward. 

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