Private Equity: Friend or Foe To Healthcare?

Private Equity in Healthcare

Is private investment good or bad for the healthcare industry? And what might the private-equity-fueled market changes mean to your organization?

Canton CEO Don McDaniel recently shared his insight on this emerging topic in the Keynote Session, “Private Equity: Friend or Foe, and What Does It Mean To Me?” at the Buchanan Ingersoll + Rooney Healthcare Insider Symposium.

McDaniel set the stage, explaining the dramatic increase in private equity (PE) investment in the healthcare space and why PE firms are targeting untapped opportunities for modernization and transformation.

“The dysfunctional healthcare story makes it very attractive to investors,” he told attendees.

In this exploration, McDaniel outlined the industry’s macro- and micro-environmental drivers that are drawing massive private investment as well as which types of assets are most attractive for acquisition. Here’s a hint: Efficiency and consumerism are two key elements that are shaping the contours of healthcare’s future.

“Consumers are becoming more important, and we haven’t really cared about consumers in healthcare for a very long time,” he said.

Payer and provider attendees were advised to look beyond the status quo and consider private investment/capital formation opportunities that would make sense for their businesses. McDaniel listed some questions that might bring clarity in advance of a potential transaction.

“Now is the time to challenge conventional wisdom and think about how you might play with investors,” he said. “All bets are off.”

Watch the complete Keynote Session from the Buchanan Ingersoll + Rooney Healthcare Insider Symposium:

Canton can help you leverage healthcare’s emerging market opportunities as a buyer, seller, or investor. Contact our team for an initial consultation!