Cardiology consolidation remains in its infancy, but it continues to be one of the hottest sectors attracting interest from private equity. Deal activity is accelerating, with 11 active platforms in the market completing 12 add-on acquisitions since January 2022. Additionally, PGP is aware of three new Cardiology platforms that are set to announce in 2023; all of which will be backed by reputable and experienced healthcare investors with extensive physician practice management experience.
Current activity in the Cardiology sector is driven by procedures moving into the outpatient setting and fewer competitive constraints for physician sellers, predominantly due to the potential of value-based reimbursement. With the promise of improved outcomes and reduced costs, value-based reimbursement models are gaining traction with private equity.
While this momentum presents significant upside opportunity for early movers, it is critical that Cardiology groups considering a private equity transaction align with a partner who has the experience to successfully capitalize on the complex and evolving reimbursement environment. It is important to work with a partner that can navigate these changes and provide value through service line expansion, administrative support, and technology solutions. This will enable the Cardiology practice to continue providing exceptional care to its patients while achieving its long-term goals and succession plans.
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