The spring 2019 issue of EndoEconomics featured an article written by Chicago healthcare partner Anna Timmerman and associate Jonathan E. Steinberg, discussing gastroenterology practices as a trending healthcare investment target for private equity and other investment firms.
In the article, the authors described the more traditional business model such practices have followed, and noted that this sector, like much of the healthcare industry, increasingly realizes the benefits of consolidation as a way to ease some of the administrative burdens of private practice.
The article explored the different options open to these practices and to interested investors — and reasons why gastroenterology is so appealing to investors right now: a fragmented industry of smaller practices with potential for consolidation, an aging population demanding such services, related ambulatory surgery centers, reimbursement by insurers and high potential for ancillary services.
As for the future, the authors noted, “Private equity and other investors’ interest in gastroenterology is likely to increase, as opportunities continue to exist for investment.”