Consolidation has been on the rise across healthcare, and cardiology is no different.
More than 70% of cardiologists are currently employed by hospitals or large healthcare systems. According to the American College of Cardiology, this shift began about 15 years ago, when a series of Medicare reimbursement cuts to select imaging procedures in 2008 led to a "paradigm shift" to health system and hospital integration. At this point, more than half of cardiologists shifted from private to consolidated settings within five years, hitting nearly 90% by 2022.
More recently, some cardiac procedures have been approved for the outpatient setting, ushering in interest from private equity groups looking to capitalize on the migration of cardiac procedures from the hospital setting to the ASC.
Cardiology is now the fastest-growing ASC specialty. Between January 2013 and September 2023, PE firms acquired 342 cardiology clinics, with the vast majority of acquisitions taking place after 2021.
Cardiovascular Associates of America, known as CVAUSA, and US Heart & Vascular are the two largest PE-backed cardiology platforms in the U.S., according to a June 14 article published in JAMA Health Forum. The platforms are backed by Webster Equity Partners and Ares Management, respectively. Both platforms were founded in 2021.
CVAUSA operates 149 locations across eight states, employing over 550 physicians and providers. Their largest acquisition was in 2023, when it acquired Neptune, N.J.-based Shore Heart Group.