Private equity investment in healthcare surged in 2025, an estimated $191 billion, and the way investors are deploying capital is shifting, according to a recent report from VMG Health.
For ASCs and physician groups, that means new opportunities and risks tied to deal structure, specialty focus, operational expectations and state-level regulation.
Here are five trends to watch.
1. Big-money deals are back.
Overall deal volume only grew modestly from 2024, but activity moved toward larger transactions, with more deals that have exceeded $1 billion and a rebound in exit value. Sponsor-to-sponsor transactions nearly doubled, signaling renewed confidence and more ways for providers/platforms to monetize.
2. Private equity’s specialty interest is expanding beyond traditional physician practice management.
Investment strategies broadened beyond classic PPM specialties (ophthalmology, dentistry, dermatology) into higher-acuity areas such as cardiology and orthopedics, plus fast-growing segments such as behavioral health, med spas and healthcare IT.
3. “Tech-enabled” has become a pricing lever.
Investors stayed focused on organizations using AI-enabled tools to improve operations and clinical outcomes. Healthcare IT also contributed meaningfully to deal value, rising to about $32 billion in 2025.
4. Holding periods are longer, and the operational bar is higher.
Holding periods are now often beyond five years, giving investors more runway to drive “real” operational change. And after two years of higher rates and headwinds, many firms prioritized operational improvements over mergers and acquisitions, but momentum in late 2025 suggests more new investment activity heading into 2026.
5. Federal rules may ease, but state scrutiny is intensifying.
Even with changes such as the Hart-Scott-Rodino Act filing threshold rising to $126.4 million for 2025, the bigger headline is state activity. More than 35 states now require transaction notifications, and some are adopting private equity-specific review laws. Meanwhile, litigation risk around the “Friendly PC” model and corporate power in medicine issues remains a key concern for buy-and-build strategies and exits.
