While the US healthcare industry has historically been stable throughout economic cycles, it has a large consumer retail component to it, and “foot traffic” has been meaningfully reduced as a result of the coronavirus. As such, many sectors within healthcare have been materially impacted. The more discretionary the service, the more the sector has been hit – with some sectors down over 80 per cent. This trend has been mitigated somewhat by the growth in some sectors like telehealth, but overall, healthcare volumes are down substantially. There are signs over the past two weeks though, that volumes have been creeping back up. These strange dynamics perpetuated by Covid-19 are having a derivative effect while PE groups sit on the sidelines, waiting to see what the valuation profile will look like once the US begins to move out of lockdown.
Read the full article: US Discretionary Healthcare Sector Feels the Impact of Coronavirus Pandemic //
Source: https://www.privateequitywire.co.uk/2020/05/21/285832/us-discretionary-healthcare-sector-feels-impact-coronavirus-pandemic