Becker's Healthcare October 12, 2023
As the ASC industry continues to grow and inflationary pressures persist, private equity strategy will likely begin to shift, according to a Sept. 29 VMG Health report.
Inflationary pressure, along with rising interest rates and labor costs, has turned private equity investors towards other deal strategies, according to the report. Investors are looking for smaller deals, where financing might be easier, or eyeing add-ons small enough to purchase without debt.
Private equity has already been eyeing ASCs for the cost savings they can offer without sacrificing quality. Private equity firms have ownership stake in two of the largest chains by market share, AmSurg and Surgery Partners. Additionally, private equity has been increasingly investing in cardiology and orthopedics,...