Industry Trends

Substantial investments —$6 billion — have been made in generative AI that aids clinicians. That’s driving improvements to surgery, note taking, workflow automation and clinical decision support.

It provides a case study for healthcare IT and services investors, for whom health systems are crucial customers and partners.

Transaction volume saw a significant drop from 2021 to 2022, down 50% to 60%, according to Cory Mertz, managing partner at M&A advisory firm Mertz Taggart.

The current uptick in health care M&A activity offers physicians on the brink of retirement a strategic — and lucrative — option as they transition to their next phase of life.

The continuing challenging environment will also likely lead to sustained merger and acquisition activity in the sector though the longer-term effects of such a dynamic will not be known for a while.

On the Value-based Care Collides with Competition series, Ropes & Gray attorneys explore how aggressive federal and state enforcement of antitrust and other competition laws appears to be in tension with the nationwide shift to value-based care models.

While the appetite exists and there remains considerable equity available, debt markets remain highly volatile.

Nicholas Grosso, MD, president of Bethesda, Md.-based The Centers for Advanced Orthopaedics, and Vishal Mehta, MD, president and managing partner of Fox Valley Orthopedics in Geneva, Ill., spoke about their strategies for future growth.

Advisory Board has quantified where money will flow if senior-focused primary care scales to 30% of the potential market size.

Evercore Private Funds Group served as the placement agent and Kirkland & Ellis served as legal counsel to VHP.