Cascade Partners' Healthcare Update

Cascade Partners has released its Healthcare Industry Update highlighting the Physician Practice Management sub sector. Some highlights from the report include:

  • The $440 billion physician practice management market is experiencing some of the highest levels of M&A activity of any facet within the medical services market. 
  • The growth and stability of the health economy is receiving increased interest from the private sector, and, in recent years, M&A in healthcare has outpaced other industries
  • Much of the consolidation is being driven by:
    • Practices seeking scale to spread escalating costs over a larger patient population
    • Practices seeking to capture increased market share to provide negotiating power with commercial insurers, hospitals and related organizations
    • Exceptionally high valuations
    • Private equity funds more aggressively pursuing the market

Today, more than anytime in recent history physicians have the broadest set of options to realize the value in their practices. Hospital systems, private equity and public companies are all focused on building the scale within physician services. 

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