ASC is attracting private equity investment across the country. VMG Health laid out the reasons why in a blog post, Becker’s reports.
The year 2021 saw the most private equity-related healthcare transactions in history, and while activity slowed in the first quarter of 2023, this reflects inflationary pressures and labor costs rather than private equity interest, according to VMG. Additionally, economic uncertainty has led PE investors to look to private credit, and smaller platform deals and add-ons according to the report.
Private equity interest in the ASC space has increased in the last few years. Two of the largest ASC chains — Surgery Partners and AmSurg — have private equity ownership, and other smaller groups are PE-backed as well.
This interest is driven by an industry shift to lower-cost procedures. For example, ASCs reduce the cost of orthopedic procedures by 17% to 43% on average, according to the report. Read more.
