In the past decade, the financial and operational ground has shifted in orthopedics and other medical specialties.
What started in the early 2000s with private equity investment and consolidation in the dental sector has evolved to affect the future of independent practices throughout all specialties, including orthopedics, eye care, dermatology and more.
Orthopedics is one of the fastest consolidating specialties in the U.S., as there are now more than 15 private equity-backed orthopedic platforms operating nationwide. Private equity investors seek to build upon the initial platforms through acquisitions, expansion of service lines and new business startups. They also provide management and administrative services for the practices with which they partner. The goal is to build business scale, achieve operational synergies and gain financial leverage when dealing with payers. In 2022, there were more than 20 orthopedic transactions completed by private equity-backed platforms. And this pace has not slowed in 2023, Healio reports. Read more.
