Industry Trends

After a hot healthcare venture capital market over the last couple of years, healthcare companies' funding has dissipated.

Medical staffing company American Physician Partners said it is planning to wind down its operations and transition its hospital contracts.

“Fair-market value is really a principle that’s used by business appraisers, evaluation specialists and others, and it’s a way to look at the current value today in a free and open market-based approach,” said Mark Sharp, home care and hospice practice leader at FORVIS.

Public health emergency funding during the COVID-19 pandemic helped hospitals' net operating margins hit an all-time high, according to a study published in JAMA Health Forum. 

The firm solely targets multisite health care provider platforms or businesses providing outsourced services, technology or tools to health care providers and payers.

In the first half of 2023, startups managed to raise $6.1 billion through 244 deals. By contrast, healthcare startups raised $29.1 billion across 737 deals in all of 2021.

Additionally, private equity firms and/or their portfolio companies represented 33% of the buyers in the HH&H M&A market during the quarter.

Shore Capital Partners comes in at #1.

Industry watchers say recent woes won't deter the search for acquisition targets.