While private equity activity in healthcare has been high over the last several years, a more recent rise in bankruptcies and defaults points to a possible rough patch for healthcare PE investments. 

Here are what three ASC leaders outlined as pros and cons of private equity in the ASC industry:

On Jan. 8, Gov. Maura Healey signed a bill into law that will increase scrutiny of healthcare transactions, according to a Jan. 10 report from The National Law Review.

Massachusetts Gov. Maura Healey is again eyeing legislation that would increase oversight of private equity activity in healthcare, Mass Live reported Jan. 2. 

While many ASCs remain independent, private equity has become an established force in the industry, with notable movements in 2024.

California and Massachusetts both attempted to pass legislation that would tighten regulations around private equity transactions in healthcare, but it is unlikely that either state will see the proposed bills become law before the end of 2024, Bloomberg reported Dec. 22. 

Here are five recent private equity deals, finalized or rumored, that ASCs are eyeing:

Private equity backed healthcare clinic Forward plans to close its doors just a year after raising $100 million in a Series E funding round, according to a Nov. 13 report from Business Insider.

Private equity activity in healthcare has increased over the last decade, and some states have passed or have pending legislation that could increase scrutiny over private equity deals in healthcare.

Ker Leader Medical, a newly established ASC development company, is committed to preserving the autonomy of physicians and ASC leadership. 

Kathleen Fisher Enyeart, counsel at Lathrop GPM, recently spoke with JDSupra to highlight key healthcare regulatory trends that she expects will shape the landscape for ASCs and physicians in the coming year.

Charlotte, N.C.-based independent practice Tryon Medical Partners finalized a deal with private equity firm TPG in September, six years after breaking away from Atrium Health, North Carolina Health News reported Oct. 9.

Despite recent declines in activity, private equity interest in the ASC space has been high over the last several years, with 95 outpatient-specific deals in 2023 alone. 

Here are five transactions, legislative updates and other private equity updates in the ASC space from third quarter of 2024, as reported by Becker's:

In the last decade, private equity investment has become a key strategy for achieving economies of scale, particularly for independent, physician-owned ASCs in more consolidated markets. 

Medicare expenditures in private equity-affiliated private practices were an average of 9.8% lower than for patients treated in hospital-affiliated practices in 2022, according to a recent study by Avalere and the American Independent Medical Practice Association. 

The California legislature recently passed a bill requiring private equity groups and hedge funds to give written notice, and in certain cases obtain consent, before investing in the state's healthcare industry.  

Private equity has long shown interest in ASCs, but some industry leaders believe that heightened scrutiny of PE’s healthcare investments could dampen this trend.

Becker's connected with Nilesh Dave, MD, vice president of clinical effectiveness and chief medical officer at Arlington-based Texas Health Resources to discuss the role of profit-driven companies in healthcare.

Private equity firms have solidified their place in healthcare over the last decade. 2012 saw just 75 PE transactions in healthcare –– in 2021, that number reached 484.