Amanda Roenius’ Post

The Financial Times ran a story today on the front page about private equity participation in the UK healthcare industry. (It was great to be quoted!). It really is a necessity as demand continues to be unmet. There will be those who resist such participation of 'commercial' operators in such a 'social' space, but the strategic and tactical discipline and related high levels of governance imposed on portfolio companies by their backers and the drive to create sustainable and enduring businesses in the long term for future owners means that private equity capital should be welcomed as enablers of effective and suitable operators. Charlie Jolly Suneel Gupta Ros Pontifex RSM UK Matt Wolf Michael Haas, MBA https://lnkd.in/enu6HZsX

Interesting, as well as the increased governance, private equity firms also consider cyber security as part of their investment protection. These considerations would most certainly be a complimentary benefit across the healthcare sector.

Private Equity in Healthcare has been a hot topic for the last few years. (Maybe not "hot enough" in my opinion...it's become dizzying to keep up with the ownership structures across almost every part of the industry today). Some interesting insights in this article regarding the slowing number of private equity deals in the market since 2023, how these deals have impacted cost & quality of care - and where PE firms may be looking next to find the next "niche". https://lnkd.in/gbZJ2Zcn

Private equity investing in healthcare services is continuing to fall, highlighting the chilling effect of heightened antitrust scrutiny in the space, according to a new report. PE firms announced or closed just below 160 deals in the first quarter, a downward trend “even from 2023’s sluggish pace,” according to the analysis by market data research firm PitchBook. The total is down almost a third from the fourth quarter last year. Despite the depression, firms have deals in the pipeline that should progress, albeit slowly, the report says. Announcements are expected to trickle in toward the end of this year, with activity picking back up in 2025.

Interesting interview about the perils of private equity involvement in medicine and medical practices. I understand Ms. Morgenson's points of discussion, but our experience has been very different. Our parent company has helped modernize our practice, made it more efficient and lowered our overhead without changing patient care or patient services. It is difficult as a small single-specialty practice to compete with the deep pockets of the big health systems who try to have a defacto monopoly in certain regions because of their vast resources. The 'right' PE firm can allow private practice to compete and provide better and more personalized services to our patients.

Private equity firms play a significant yet often overlooked role in the healthcare sector, with a growing presence in hospital ownership. Research from UC Berkeley's School of Public Health reveals that the total value of private equity deals in healthcare surged to $120 billion in 2019, nearly tripling over the preceding decade. The number of deals also increased substantially from 352 to 874 during the same period. Although the value of deals dipped in 2020 due to the pandemic, the number of transactions rose to 937. However, researchers caution that these figures likely underestimate the actual scale of private equity buyouts, as many deals remain unreported or undisclosed. Furthermore, the study highlights a growing focus of private equity funds on the healthcare sector. In 2020, healthcare accounted for 18% of total reported private equity buyouts, up from 12% a decade earlier. As of 2023, it's estimated that private equity firms own approximately 386 hospitals, constituting 9% of all private hospitals in the United States, according to data from the Private Equity Stakeholder Project. Additionally, these firms reportedly possess 30% of all for-profit hospitals. Link in the comments to read more 👇 #privateequity #finance #economy #USEconomy #healthcare

There has been significant investment in the healthcare sector by Private Equity (PE), with more than $750 billion invested by PE in a wide range of U.S. healthcare initiatives. Peter Jennings and I are joined by Sanjay Panchal from Livingbridge, Sam Gray from Apposite Capital and Alison Price from Queen's Park Equity and discuss why there's so much interest in the healthcare sector. Tune in to the full episode to learn about the subsectors receiving the most interest from investors, the surge of tech-enablement in this space, and our guests’ respective value-creation strategies. https://lnkd.in/e44m2eHT Grant Thornton UK LLP #privateequity #healthcare #grantthornton #valuecreation #techenablement

Thank you for sharing Andrew H. Lovewell, MHA, MSHI, FACHE. Surprising to note the significant drop in healthcare M&A activity. This could reshape the landscape and lead to new strategies for growth and collaboration. I welcome any feedback from my industry friends and experts. #healthcarebusiness #HealthcareIndustry"

This article from Modern Healthcare highlights the challenges that hospitals and health systems face with some investments from private equity. I will not say that PE investment is bad for these institutions, but there are inherent points of conflict between many equity sponsor investment objectives and the financial realities of healthcare delivery. The capital infusion from PE into many hospitals is sorely needed. The ROI and any debt service, however, is often a major point of conflict in the respective business models. A deep understanding of the complexities of PE-backed healthcare is required to help both industries maximize the effectiveness of these investments. HUB's Private Equity and Healthcare Specialty teams know this space and help our clients dispel perceptions of preparedness versus the realities thereof. My colleagues Chris Veber, Liz Yarger, Anthony DellaCroce, John Marshall, Danny Gemma and many others can help. Ask HUB! We can help organizations be ready for tomorrow. #healthcare #privateequity #erm #riskmanagement #hubinternational

The M&A space could potentially be cooling off with a pending recession or "soft landing". On top of that, many private practices are learning from their colleagues about the private equity deal structures and finding the potential "second bite" to be daunting. Private groups are looking at potential partnerships within their like specialty or others are looking to join a bigger conglomerate. Either way, physicians and smaller practices are finding that consolidation and partnership are a must in the future.