The healthcare services sector saw relatively robust PE deal activity in 2022, but it wasn’t immune to the broader economic uncertainty and increased capital costs, PitchBook notes.
Quarterly deal activity in 2022, while in line with pre-pandemic trends, has declined for four consecutive quarters, , according to PitchBook’s Q4 2022 Healthcare Services Report. With job openings increasing quickly, and hiring numbers remaining stable, labor costs are going up in the healthcare services industry, providing another reason for a decline in dealmaking. Still, there is potential in 2023 for growth in the latter half of the year, according to PitchBook analyst Rebecca Springer. One of the segments that could lead this charge—and one partly responsible for the slowdown in 2022—is skilled care and behavioral health. Read more.
