Why is healthcare so attractive to investors?

Healthcare’s recession-resistant nature makes this industry very attractive to investors — people will always need it at every stage of their lives

High valuations, strong return on investment and the desire to drive scale efficiencies and enhance margins have led to heavy merger and acquisition activity in the healthcare industry.

In addition, the application of traditional business principles such as economies of scale and technology is driving proven value in several segments of the healthcare industry. Buyers, especially private equity firms, are capitalizing on a historical lack of focus on efficient business operations within many segments of the healthcare sector.

The increasing costs due to compliance, quality metrics and technology requirements are driving organizations to embrace more traditional business principles and seek scale for leverage against higher costs.

The interest of these firms has created a wealth of opportunities for all businesses within healthcare, and especially physician practices. To learn more, please review our resources or reach out to our team.