Primary Care: One of the Most Sought-After Investment Verticals

There are a number of key trends impacting the primary care landscape and making it such an attractive space for investors.

Primary care is the most dynamic vertical across healthcare services, with PCPs naturally positioned as the “quarterback” for care delivery. PCPs account for less than 5% of healthcare spend but direct 85% of the cost and, in turn, will continue to attract significant investment interest.

The US will be short thousands of primary care physicians in 2030, with a high propensity in rural areas. Recently, there has been a shift to team-based care in which nurse practitioners and physician assistants are integrated into the healthcare delivery model.

CMS has mandated that all Medicare beneficiaries (both A and B) be in a value-based care model by 2030. This mandated shift has accelerated the transition away from fee-for-service revenue models towards risk-based arrangements. Provider groups that can effectively capitalize on this dynamic by driving shared savings and improved patient outcomes will be well-positioned to attract investor interest and command premium valuations.

These are only a few of the many trends that make this industry ripe for consolidation. Provident’s coverage team has built a comprehensive overview deck on the primary care market that includes key statistics, emerging trends, competitive landscape, and valuation considerations. Contact us to get answers to your questions or learn more about industry consolidation.