Value-based Care in the Spotlight in 2025

Value-based primary care (VBC) offerings in more convenient locations have become increasingly popular, according to a recent Healthcare & Life Sciences Insider report released by the Healthcare Provider Services investment banking team at BGL.

VBC focuses on how much value the patient gets out of the doctor's service. It encourages teams of doctors to communicate and coordinate around a patient's care, focusing on the patient as a whole person and considering their healthcare needs and goals. The various forms of this payment model tie the amount the healthcare provider earns for their services to the results they deliver to their patients. Not only does it include doctors focusing on the patient's health care needs, but it includes the patient's physical, mental, behavioral, and social needs as well.

The development of VBC has transformed primary care delivery models across the country from FFS clinics to population-health and care-management navigators. Companies like Colonial Healthcare, which BGL helped complete a recent transaction, follow the "We Will See You Today" motto, demonstrating a commitment to ensure patients' needs are affordably met. Such an approach is very popular among customers and investors have taken note.

Since 2019 we have seen a significant increase in equity investment and M&A activity in the sector, with 2021 serving as a banner year. Since 2021, transaction volume has trailed off, but that slowdown in activity in 2023 and 2024 is more a function of the broader appetite for reimbursed services models.

Contact our Provider Services Group

Led by John C. Riddle, J. Kyle Brown, and Jonathan Bluth, BGL's 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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