Sheryl Tatar Dacso

Private investment in healthcare entities continued at a high pace in 2025, reaching global highs in deal value. Many companies invested in entities such as nursing homes, hospitals and certain specialties like dentistry, anesthesia and emergency medicine and dermatology. A consequence of the high deal volume has been increased attention and scrutiny by many state governments of transactions between private equity and certain healthcare entities.

Private investment in healthcare entities continued at a high pace in 2025, reaching global highs in deal value. Many companies invested in entities such as nursing homes, hospitals and certain specialties like dentistry, anesthesia and emergency medicine and dermatology. A consequence of the high deal volume has been increased attention and scrutiny by many state governments of transactions between private equity and certain healthcare entities.

1. Increased Financial Distress for Providers — Due to a variety of factors, including wage and supply inflation, increased reimbursement pressure from all payors, and decreases in Medicaid and Patient Protection and Affordable Care Act coverage (emerging out of federal legislation), in 2026 we may see greater financial distress for providers across all sectors. This distress may lead to some greater transactional activity, as providers look for additional sources of capital.