The healthcare services sector has continued to attract private equity investors this year. While opportunities for platform acquisitions have shrunk, relatively steady add-on activity suggests PE investments are still fueling the consolidation trends in this highly fragmented segment, PitchBook reports.
Looking ahead, cash-rich PE investors are expected to continue to pump money into the healthcare services industry, which is typically considered more recession-resistant. There will be exceptions, though. Certain segments, such as nursing homes, home healthcare and behavioral health, may experience a relatively slowing pace of dealmaking, as they face headwinds ranging from staffing shortages to reimbursement pressures. Read more.