CHICAGO, Jan. 25, 2022 /PRNewswire/ -- The investment
community is moving "up the acuity curve" as they seek novel
opportunities to deploy capital, with Cardiology a specialty ripe
for consolidation, according to an industry report released by the
Healthcare Provider Services investment banking team at
Brown Gibbons Lang & Company (BGL).
Favorable secular trends, fragmentation, and the opportunity for
platform growth through practice consolidation and service line
expansion are draws.
Inside the report, BGL highlights a number of growth catalysts
driving outside capital investment in the specialty.
Read the BGL Healthcare & Life Sciences Insider –
Cardiology Investment Poised to Accelerate:
https://bit.ly/BGLhlsCardioIns
Inside the report, BGL highlights a number of growth catalysts
driving outside capital investment in the specialty:
- Demographic trends that support sustained demand for
cardiovascular care;
- Regulatory tailwinds driving ongoing shift in site-of-service
to the ambulatory environment, with reimbursement trends
incentivizing such shifts;
- Continued technological advancements facilitating delivery of
advanced procedures in the outpatient setting, coupled with
preventive trends like remote patient monitoring; and
- Market fragmentation lending to consolidation
opportunities.
The report also features an exclusive executive roundtable which
discusses the current state of the market, as well as future
outlook.
Dave Alpern, founding partner of
Varsity Healthcare Partners, an investor in Partners First
Cardiology, spoke to the attractiveness of cardiovascular services
as an investment area: "Cardiology is a ripe category for
investment. First, it's a big space - 30,000-plus licensed
cardiology providers in the U.S., where the hospital systems have
been the only source of capital in cardiovascular medicine and
currently roughly 70% of that population is employed by a hospital.
Secondly, the secular trends in the cardiology/cardiovascular space
are just undeniably good… along with what feels like sustainable
Medicare support for reimbursement of cardiac interventions in the
ambulatory environment … there's a strong investment thesis there."
Alpern characterizes the recent approvals by Medicare for
outpatient reimbursement in cardiology as the catalyst… "that
will/is driving an outmigration of procedures from the
hospital."
"There's clearly been a real appetite for moving to outpatient
cardiovascular care. But…there is plenty of runway left," observed
Holly Stokes, a Health Policy
Consultant at Farragut Square and report participant.
Sponsors are actively seeking complementary acquisitions to
build size and scale through geographic and service line expansion;
significant fragmentation presents the opportunity to pursue
various growth strategies. Varsity Healthcare Partners (Partners
First Cardiology), Ashlar Capital (Cardiothoracic & Vascular
Surgical Associates), Athyrium/Comvest Partners (Sunset
Cardiology), Alvarez & Marsal Capital (Nevada Heart & Vascular), Silversmith
Capital (USHP), Webster Equity Partners (Cardiovascular Medicine),
Deerfield Management Company (Novocardia), and Assured Healthcare
Partners (Cardiovascular Health Partners) are among the private
equity funds to announce new investments in the space.
About Brown Gibbons Lang & Company
Brown Gibbons
Lang & Company (BGL) is a leading independent investment bank
and financial advisory firm focused on the global middle market.
The firm advises private and public corporations and private equity
groups on mergers and acquisitions, divestitures, capital
markets, financial restructurings, valuations and
opinions, and other strategic matters. BGL has investment
banking offices in Chicago,
Cleveland, and Philadelphia, and real estate offices in
Chicago, Cleveland, Denver, and San
Antonio. The firm is also a founding member of Global
M&A Partners, enabling BGL to service clients in more than 30
countries around the world. Securities transactions are conducted
through Brown, Gibbons, Lang & Company Securities, Inc., an
affiliate of Brown Gibbons Lang & Company LLC and a registered
broker-dealer and member of FINRA and SIPC. For more information,
please visit www.bglco.com.
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SOURCE Brown Gibbons Lang & Company