Industry Trends

While the historical pathway for a physician to move into the concierge medicine model was to work with a management company to convert their existing, independent practice, things have changed.

But mega-rounds ($100M+) increased in both deal number and funding amount for the first time since the end of 2021.

New state legislation that bolsters merger oversight may create additional hurdles for Fairview in its search.

Envision Healthcare, with $9.9 billion in PE investment as of 2018, ranks as the largest such deal in the last 10 years.

There are a number of factors that are contributing to this trend of bankruptcy filings, including capital market constraints, care shifting out of institutional settings and the expiration of continuous Medicaid enrollment.

Investments by private-equity firms in insurance underwriting companies rose in the second quarter compared with the first quarter but were significantly down from the same period last year, according to an analysis released by S&P Global.

Eroding economics is often the major reason why a health system agrees to be acquired or merged. These mergers and acquisitions are occurring at an alarming rate.

One major challenge is the shift from commercial to government payment models, as public reimbursement fails to cover costs, leading to financial instability. The increasing reliance on government-funded health coverage further exacerbates this issue.

Deals were still down 14% compared with the year-ago quarter.

A data breach affected 11 million HCA patients and 171 hospitals is one of the key issues.