Lexology March 15, 2023
INTRODUCTION
Private equity investment in healthcare reached an all-time high in 2022, with reports putting the overall deal value at a staggering $151 billion. But 2023 is shaping up to be a very different year, with investors pulling back as they try to figure out how long the landscape will be dominated by rising labor costs and interest rates. Here are five trends to watch in private equity healthcare investing from our conversations with leading investors and bankers.
RISING LABOR COSTS
No deal can be made in the healthcare sector without considering how wage inflation will impact a business’s performance. Wage inflation is being seen among both employed and contract workers and has been notable among mid-level providers, such as...