The health care industry is known for its financial stability. As this industry continues to show growth, buyers are emerging from interesting, and sometimes unexpected, backgrounds. Two recent examples include:
- Retail. Giants in the retail world have also expanded their presence in the health care industry. The most recent is Best Buy. The electronic super store has announced it will focus on growth within this market. One way it aims to achieve this goal: remote patient monitoring. The retailer recently bought Critical Signal Technologies (CST) to help make its presence in the commercial monitoring business. Other retailers joining the health care market include Walmart and Amazon.
- Private equity firm. Physicians looking to grow their practice may look to an outside investor for help. Private equity groups are ceasing this opportunity. Over 181 private equity deals were reported between physician practices and private equity firms in 2018 alone.
The health care marketplace is evolving. Although these deals can result in financial growth, they are not free of risk. Private practices that choose to move forward with a deal with a private equity firm, for example, can agree to a risky future. These deals generally end with another sale three to seven years after the initial deal. As a result, physician groups may take a gamble with their future as the future potential buyer is an unknown at the time of the deal.
Physician groups that are looking to sell or grow their practice have multiple options. An attorney experienced in navigating the legal quagmire that comes with this changing marketplace can help review your options.