Primary Care and Urgent Care M&A Poised for Growth in 2025

While the Healthcare sector continues to settle following the 2020 pandemic, equity investment and M&A activity will increase within the primary care and urgent care industries, according to a recent Healthcare & Life Sciences
Insider report released by the Healthcare Provider Services investment banking team at BGL. Healthcare platforms such as these that provide a pathway to risk-sharing and value-based care are still valued at a premium by investors.

There continues to be a strong focus on regional density and comprehensive service offerings. Xpress Wellness (partnered with Latticework Capital Management) was rewarded for a focus on regional density through a recent transaction with Goldman Sachs Alternatives in April 2024. The Xpress Wellness transaction marked one of only a small handful of provider transactions in 2024 to trade from sponsor to sponsor. Lastly, regional hospital systems health plans, private equity investors, and regional competitors are becoming increasingly interested in acquiring these models.

As consolidation activity continues, differentiated go-to-market strategies around wellness and longevity allow platforms to stand out from their local and regional competitors. Innovative technologies for physician or patient scheduling and self-pay management solutions allow groups to attract and retain higher quality providers and draw patients away from competitors. Further, population health strategies leveraging non-physician care extenders, home healthcare technologies, and enhanced care management will drive improved outcomes, increased patient satisfaction, and greater regional coverage. Meanwhile, several large employers are pursuing direct primary care solutions where they employ providers and offer urgent care solutions on-site to get even closer to their patients and assist with preventative healthcare.

Contact our Healthcare Provider Services Group

Led by John C. Riddle, J. Kyle Brown, and Jonathan M. Bluth, BGL's Healthcare Provider Services Group has the investment banking and capital markets experience to advise clients across a broad spectrum of physician practice M&A, capital markets activities and strategic assignments. To learn more about how we can help with strategies for valuing a physician practice, selling a physician practice or buying a physician practice, as well as other strategies to position you for growth, please reach out via our contact form.

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