Deal volume in the first quarter was the lowest since the second quarter of 2020, according to PitchBook data, consistent with overall declines in U.S. private equity transactions. The headwinds depressing health care services deal volume include macroeconomic challenges—primarily higher interest rates—and industry pressures around reimbursement, labor costs and regulatory scrutiny. Despite margin and regulatory challenges facing the health care industry, investors still want exposure to the $5 trillion health care ecosystem. Many are pivoting to health care subsectors such as practice management technology, suppliers and other health-care-adjacent or “lite” businesses.
Read the full article: Some Investors Focus on Health Care Subsectors amid Traditional Deal Decline //
Source: https://rsmus.com/insights/industries/health-care/some-investors-focus-on-health-care-subsectors-amid-traditional-deal-decline.html