How Private Equity Organizations Can Speed ROI From Investments in Specialty Practices
Private Equity (PE) investment in healthcare reached an all-time high in 2021, followed by 2022, in terms of disclosed deal value. Meanwhile, penetration of value-based care models is growing by double digits. This growth underpins a robust investment thesis, suggesting that value-based care could continue to be a lucrative investment domain. Indeed, the increasing importance of value-based care suggests that the potential return could be as high as a "$1 trillion prize" in enterprise value, based on a McKinsey analysis.
While primary care and Medicare Advantage are the locus of investment activity, opportunities across specialty segments are expanding. Recent CMS Innovation models, such as the Oncology Care Model (OCM), the Enhancing Oncology Model (EOM), and the ComprehensiveKidney Care Contracting (CKCC) model are enticing both practices and PE investors. The question then becomes: How can private equity firms speed ROI from investments in specialty practices, and accelerate their return on their piece of that trillion-dollar prize?
How Private Equity Organizations Can Speed ROI From Investments in Specialty Practices
Private Equity (PE) investment in healthcare reached an all-time high in 2021, followed by 2022, in terms of disclosed deal value. Meanwhile, penetration of value-based care models is growing by double digits. This growth underpins a robust investment thesis, suggesting that value-based care could continue to be a lucrative investment domain. Indeed, the increasing importance of value-based care suggests that the potential return could be as high as a "$1 trillion prize" in enterprise value, based on a McKinsey analysis.
While primary care and Medicare Advantage are the locus of investment activity, opportunities across specialty segments are expanding. Recent CMS Innovation models, such as the Oncology Care Model (OCM), the Enhancing Oncology Model (EOM), and the ComprehensiveKidney Care Contracting (CKCC) model are enticing both practices and PE investors. The question then becomes: How can private equity firms speed ROI from investments in specialty practices, and accelerate their return on their piece of that trillion-dollar prize?
How Private Equity Organizations Can Speed ROI From Investments in Specialty Practices
Private Equity (PE) investment in healthcare reached an all-time high in 2021, followed by 2022, in terms of disclosed deal value. Meanwhile, penetration of value-based care models is growing by double digits. This growth underpins a robust investment thesis, suggesting that value-based care could continue to be a lucrative investment domain. Indeed, the increasing importance of value-based care suggests that the potential return could be as high as a "$1 trillion prize" in enterprise value, based on a McKinsey analysis.
While primary care and Medicare Advantage are the locus of investment activity, opportunities across specialty segments are expanding. Recent CMS Innovation models, such as the Oncology Care Model (OCM), the Enhancing Oncology Model (EOM), and the ComprehensiveKidney Care Contracting (CKCC) model are enticing both practices and PE investors. The question then becomes: How can private equity firms speed ROI from investments in specialty practices, and accelerate their return on their piece of that trillion-dollar prize?
