As 2023 draws to a close, private equity backed urology groups continues to be active in the urology sector, driven by a confluence of factors that promise sustained growth in the coming years. The sector’s resilience and appeal can be attributed to the ongoing demographic shift, characterized by an aging population that increasingly requires urological care. Furthermore, the urology field presents a plethora of ancillary opportunities with economies of scale, including advancements in medical imaging, pathology, radiation therapy, the management of chronic urological conditions, and surgery center development. These factors collectively create a conducive environment for accelerated urology consolidation, with major players in the industry actively seeking opportunities to enhance their scale and geographic footprint.
Across the U.S., there are currently seven private equity backed urology platforms along with Summit Health, that have been actively acquiring urology groups throughout the United States. Looking ahead to 2024, we anticipate the activity to continue with current private equity backed urology platforms consolidating like-minded practice in current and adjacent markets.
We do not foresee any new private equity groups entering the Urology sector but do believe several PE-backed urology groups will achieve a “second bite” within the next 12 to 24 months.
Independent urology groups are poised to benefit from this trend, as the established platforms have developed economies of scale and strengthened their foundations, boasting a track record of success that continues to grow. However, there are instances where private equity backed urology groups underperformed due to lack of alignment with their practice affiliations. As a result, it is imperative to evaluate these groups based on cultural fit and benefits associated with joining a private equity backed urology platform.
Interested in how private equity can be helpful in your practice?
Arizona Institute of Urology and Urological Associates of Southern Arizona
Audax Private Equity
United Urology Group
AZ
January 2021
Southwest Urology
Silver Oak Services
Integrated Oncology Network
OH
November 2020
Associated Medical Professionals of New York
NMS Capital
US Urology Partners
NY
*These practices were advised by PGP
About Our Firm
Physician Growth Partners (PGP) is a transaction advisory firm working exclusively with independent physician groups in transactions with private equity.
Differentiated Healthcare Transaction Advisors:
Senior partner involvement at every stage of the process
Extensive physician practice transaction experience
Unmatched relationships with all key private equity and strategic buyers interested in Urology
Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market clearing valuation
