Healthcare services private equity dealmaking rose 9.6% year over year in 2025 to an estimated 747 transactions, even as total deal value declined 1.6% amid fewer closings and a meaningful Q4 pause. The aggregate story masks sharper subsector divergence: skilled nursing facilities, specialty pharmacy, hospitals and health systems, and intellectual and developmental disability practices led growth, while physician practice management deal count fell 18% behind steep pullbacks in gastroenterology, fertility, and ENT. Sponsors entering 2026 face a market defined less by where healthcare PE is active and more by which subsectors are entering their next consolidation cycle.
Healthcare PE at a Glance
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747
+9.6% YoY
Healthcare services PE deals (2025)
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−1.6%
Q4 pullback
Total deal value change YoY
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−18%
regulatory friction
PPM deal count change
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+57.1%
2026 recovery signal
PPM exit count change
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Why It Matters
The Q4 pause in healthcare services dealmaking was driven by two specific forces. State-level regulatory friction in California and other states is reshaping how PPM transactions structure[1]. Uncertainty around 2026 premium subsidies is delaying deals that would otherwise close. Sponsors with active deal pipelines in oncology, musculoskeletal, and ambulatory surgical centers face a different competitive backdrop than those still pursuing dermatology and gastroenterology platforms.
Key takeaways
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Deal activity
Volume up, value down — but not uniformlyAn estimated 747 deals in 2025 marked a 9.6% YoY increase from a 2024 bottom. Total deal value fell 1.6% as Q4 saw a meaningful pause. The diverging volume-vs-value pattern reflects continued activity at the lower end of the deal-size distribution alongside selective restraint on larger transactions, with sponsors holding back on larger platform deals while continuing add-on activity. |
Subsector divergence
PPM declined 18% while skilled nursing and specialty pharmacy led growthPhysician practice management deal count fell 18% in 2025, driven by gastroenterology, fertility, and ENT pullbacks. Skilled nursing facilities, specialty pharmacy, hospitals and health systems, and intellectual and developmental disability practices led growth. Healthcare PE in 2026 is multiple stories, not one. |
Exit signal
PPM exits jumped 57.1% — a 2026 recovery signalPPM exit count rose 57.1% in 2025. PitchBook frames this as an early signal that transaction volume could recover in 2026, especially in oncology and musculoskeletal. Sponsors with PPM platforms in those subsectors face a different exit calculus than the broader sector data suggests. |
Companies & investors
The companies and investors below are active in this market. The italicized line under each is descriptive context — the entity's role in the dynamic this page is tracking.
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Cencora
Strategic Acquirer
Acquired OneOncology for $7.4 billion in 2025 — a 2025 strategic transaction tracked by PitchBook in its Healthcare Services Report. View Cencora profile → |
Walgreens Boots Alliance
Strategic Seller
Sycamore Partners' $10 billion take-private of Walgreens was the largest strategic-to-PE healthcare transaction of 2025. View Walgreens Boots Alliance profile → |
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Ascension
Health System / Strategic
Acquired AMSURG for $3.9 billion in 2025 — a 2025 ambulatory surgical center transaction with comp-set relevance. View Ascension profile → |
Lifepoint Health
Apollo PE-Backed Platform
Owned by Apollo Global Management. Continued joint venture growth strategy in 2025 with 70+ JVs across 30+ nonprofit partners. View Lifepoint Health profile → |
Featured research
The PitchBook reports and articles that source the data on this page.
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Q1 2026
Q4 2025 Healthcare Services ReportEstimated 747 deals in 2025; PPM deal count down 18% but PPM exit count up 57.1% — early 2026 recovery signal in oncology and musculoskeletal. Download report → |
Q2 2025
Q1 2025 Healthcare Services PE UpdateStrategic-to-PE consolidation including Sycamore's $10B take-private of Walgreens; subsector divergence emerging. Download report → |
2025
Healthcare PE dealmakers face pandemic déjà vuQ3 2025 EV/EBITDA compressed into 8x–12x range and EV/sales between 0.5x and 1.2x — multiple compression amid market uncertainty. Read article → |
Get this data in PitchBook
This page surfaces 4 healthcare entities active in the 2025 cycle. PitchBook tracks the full healthcare PE deal universe — every closed and pending transaction, every PE-backed platform, and every reported add-on across the 747 deals identified in the Q4 2025 Healthcare Services Report.
Track healthcare PE deal flow in real timeScreen every healthcare deal by stage, subsector, sponsor, and deal type. Set alerts for activity in oncology, musculoskeletal, and other recovery-signaling categories. Explore → |
Map platform company ownershipIdentify sponsor-backed platforms and their full add-on histories. Understand subsector concentration before entering a market. Explore → |
Benchmark valuations against comparable transactionsCompare EBITDA multiples and revenue multiples across healthcare deals. Q3 2025 data shows EV/EBITDA compressed into 8x–12x range and EV/sales between 0.5x and 1.2x. Explore → |