Healthcare Services Report

As PE healthcare deals slow, cardiology attracts buzz  
 
The pulse of PE dealmaking in healthcare services slowed for a fifth-straight quarter in Q1, as sponsors dealt with the lasting reality of lower valuation multiples, harder-to-access leverage, and rising debt services costs. But the 200 deals struck in those three months was still 20% higher than we saw on average in 2018 and 2019.  
 
Despite that softened dealmaking environment, cardiology is getting growing attention from PE sponsors, who see potential returns in migrating some practices into an outpatient setting and billing insurance under value-based care schemes.  
 
Our Q1 2023 Healthcare Services Report lays out how deals are getting closed—more seller earnouts, for example—and how still-looming recession risk could influence activity through the end of the year.