The Top Areas in Healthcare for Private Equity Investment in 2014

February 4, 2014

Reimbursement model changes and cost-cutting pressures imposed by the Patient Protection and Affordable Care Act (ACA), a lukewarm economy, and new regulatory challenges within healthcare continue to cause changes in private equity investment. While the overall volume of transactions in 2013 declined from 2012, there was significant growth in certain subsectors of healthcare. The following is a summary of the current status of 19 niches within the healthcare industry that have attracted private equity investments: hospitals and health systems, pain management, anesthesia, ambulatory surgery centers, urgent care, dental practice management, health information technology, rehabilitation and addiction treatment, physical therapy, life sciences, home healthcare, cancer and oncology-driven care, chronic disease, wound care, hospices, skilled nursing facilities, revenue cycle management, physician practices, and imaging centers. We discuss our observations of the areas where we expect to see continued growth and those areas where regulation and payer pressures may hinder further growth.

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