Cardiology Physician Practice M&A Industry Update Q4 2024

• Cardiology private equity investment has ramped up significantly over the last few years, growing from a few initial investors into more than ten platforms today. In 2023 and 2024, add-on transactions accelerated as new platforms continued executing a roll-up strategy, resulting in record cardiology transaction volume. The year also included multiple new platform investments and exits.
• Key trends in the cardiology landscape include:
  • Focus on Value-Based Care and Outcomes: Emphasis on practices that manage chronic conditions more efficiently and track KPIs such as hospital readmissions.
  • Technological Advancements and Innovation: Advanced diagnostics, minimally invasive procedures, and telemedicine continue to evolve cardiology care.
  • Telehealth and Remote Patient Monitoring: Consultations and post-care check ins continue to utilize telehealth and remote patient monitoring devices to improve access to care and compliance for both providers and patients.
  • Personalized Medicine: Tailored treatment plans around patients own personal health profile and risk factors.
  • Preventative Care: Practices are offering supplementary services like nutrition advice, exercise programs, and stress management techniques making them a one-stop solution for a comprehensive cardiovascular care plan.

Cardiology Investment Objectives and Opportunities

Operations Experience and Economies of Scale

Economies of scale can take different forms such as bulk purchasing discounts for equipment, professionalization of accounting and revenue cycle management functions, and employee benefits and insurance savings.

Growth Investments

Private equity can help to finance infrastructure investments including the buildout of de-novo outpatient clinics, office-based labs (OBLs), and ambulatory surgery centers (ASCs). Provider recruitment support and capital to fund additional practice acquisitions are additional key targeted growth opportunities.

Diversified Revenue Streams

Private equity can help to finance equipment and devices required to perform ancillary services in-house. Key cardiovascular ancillaries include diagnostic stress testing services, advanced imaging (PET/CT), remote patient monitoring, and cardiac rehab services.

Value Based Care and Technology Upgrades

Private equity can help invest in the technology infrastructure required to efficiently capture patient outcome data. Well-coordinated, high-quality providers that achieve superior patient outcomes and coordinate preventative care can achieve meaningful increases in profitability by embracing value-based care models.