Industry Trends

The article covers six healthcare trends for private equity in 2023, including challenges that impact deal evaluation and due diligence.

The report – which includes self-reported compensation data from over 190,000 U.S. doctors over six years and more than 31,000 full-time physicians in 2022 – also highlights the substantial gender pay gap among physicians, with men earning nearly $110,000 more than their women counterparts in 2022.

"We believe that interest rate hikes that have already occurred will have a larger impact on the 47 companies in our sample …" Moody's said. "The effects of prior rate increases will be felt with each sequential quarter of earnings throughout 2023. Still, any future rate hikes would also have an impact."

High-acuity procedures are migrating to ASCs and facilities are adding service lines to increase case volume and revenue has benefited patients and management — and investors have noticed.

To preserve long-term stability, the hospital is still looking for a buyer and has received one letter of intent from a qualified entity.

The industry is on the downswing of a dealmaking cycle that includes booms and cooling periods.

No matter how confident an investor feels in their current portfolios, it’s impossible not to be shaken by certain headlines.

In the decades leading up to the Covid-19 pandemic, acquisitions of hospitals and health systems by private equity firms soared, sparking debate about how the growing influence of PE in U.S. health care would affect costs, quality, and access.

The driving force behind these deals, according to Sabrina T. Howell, PhD, associate professor of finance at New York University Stern School of Business, is the concentration of money in the health care sector.

Femtech has grown over the last decade, but investments in female-focused companies pale in comparison to the larger digital health sector.