Key Takeaways from the Healthcare Transactions Conference 2023
Mark Thomas, Co-founder and Director of Operations at M&A Healthcare Advisors, recently attended the Healthcare Transactions Conference hosted by the American Health Law Association in Nashville, Tennessee. Thomas shared three crucial takeaways from the event that shed light on trends and activities within the lower-middle market healthcare sector.
- Physician Groups: Thomas highlighted that the interest and activity in physician groups are at an all-time high, with cardiology, oncology, and gastroenterology being the primary focus areas. This surge in demand for physician practices has been witnessed in recent transactions, including M&A Healthcare Advisors’ successful sale of Medical House Calls with Compassion.
- Anticipated Transaction Activity: Based on Q1 data and some April figures, the majority of transactions for the remainder of 2023 are expected to consist of add-on or bolt-on acquisitions instead of platform acquisitions. Add-on and bolt-on acquisitions typically allow platforms to expand their staffing, geographic footprint, or add a service line. This trend aligns with M&A Healthcare Advisors’ findings and experiences from the past four months.
- Private Equity Stigma: The conference addressed the stigma surrounding private equity in healthcare, suggesting that it has a “PR problem.” Many fear that private equity firms will cut costs, reduce staff, and compromise the quality of care. However, Thomas emphasized the importance of vetting every potential buyer during a transaction process. In his experience, many private equity groups have successfully continued the legacy and quality of care established by the original operators.
In conclusion, the Healthcare Transactions Conference provided valuable insights into the current landscape of healthcare acquisitions and the role of private equity in the industry. By engaging with potential buyers and properly vetting them, healthcare business owners can ensure a smooth transaction process and maintain the quality of care they have established.
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