Dealmakers have so soured on physician practice management businesses that these deals are being referred to as a “contrarian play” at industry events, PitchBook Lead Healthcare Analyst Rebecca Springer reports in her latest Industry Research analyst note, which recaps a trio of recent healthcare conferences in New York. Here’s the rub: Valuations for PPMs—like dental, vision and mental health practices—would have to drop before buyers see significant value in the sector. And that would require PE sellers to lock in lower returns. A better place to look for value may well be add-ons in segments where competition has declined, such as healthcare IT, where startups are increasingly open to selling to private equity.
Read the full article: Have Specialty Physician Acquisitions Become a “Contrarian” Bet? //
Source: https://pitchbook.com/news/reports/q4-2024-pitchbook-analyst-note-cain-brothers-healthcare-mcdermott-hospitals-and-hpe-nyc