The past two years have been challenging for investors in the healthcare provider sector. Tight credit markets led to increased uncertainty among investors. In parallel, the lapse of COVID-19-era revenue protections and ongoing input cost inflation compressed margins at most target provider organizations. As a result, buyout deal activity declined by 19 percent per year from 2021 to 2023, as buyers perceived sellers’ value expectations to be not consonant with market realities. Despite the bearishness, investors with a long-term mindset have recognized three important themes.
Read the full article: McKinsey: Principles for Provider Investments in 2025 //
Source: https://www.mckinsey.com/industries/healthcare/our-insights/healthcare-blog/principles-for-provider-investments-in-2025