Compared to other medical fields like dentistry and dermatology, private equity involvement in orthopedic practices has been relatively small. But that’s been changing over the past few years and is likely to continue to grow moving forward, notes Focus Investment Banking.
Orthopedics is one of the fastest growing segments of the healthcare industry, generating more than 137 million annual patient visits and $110 billion in revenue, driven largely by a growing—and aging— population. The Census Bureau estimates that more than one in five Americans will be 65 or older by 2030.
Millions of them will need to be treated for arthritis and pain management to more serious ailments, from spinal surgery to knee replacements.
That dynamic is exacerbated by the relative imbalance between the high demand for orthopedic care and a relatively low supply of surgeons, which creates an additional long-term sustainable growth scenario attractive to private equity investors. Read more.
