The pace of healthcare industry consolidations, including mergers and acquisitions, has dramatically increased in each of the last 3 years, and industry experts predict that this trend will be even more robust in 2019.  The key impetus for this trend is the desire to reduce out-of-control costs of healthcare in the U.S., by moving to a value-based reimbursement system which rewards the provision of quality, cost-effective and patient-centric healthcare services.  To be successful in achieving this objective, providers must invest large amounts of capital into advanced EMR and IT platforms, care management staff, care coordination capabilities, and less-expensive care-delivery settings.  This demand for substantial capital has favored larger organizations and their ability to benefit from economies of scale and sophisticated corporate infrastructure.

Thus, healthcare providers – such as hospital systems, physician groups, home health companies, and urgent care, retail and behavioral health clinics – have expanded in size through strategic consolidation and affiliation transactions, and will continue to do so for the foreseeable future.  Likewise, the demand is growing for healthcare EMR and information technology companies to develop software, apps and other IT platforms to assist providers in providing quality, cost-effective and consumer-friendly care.

Key “takeaways” from Gary’s presentation will be: (1) The Value of a Private Equity Partner; (2) Why are Practices Aligning with Investors? (3) Private Equity Investment Successes; and (4) Private Equity Trends in Physician Specialties.