HPE Miami 2023 | The Next Generation of PE and Hospital & Health System Collaboration

Key takeaways included:

1. While it is a frequent topic of discussion, collaborations between health systems and private equity have been limited. However, headwinds in the health system sector might change that in the coming years. Significant potential for collaboration exists with respect to outsourcing nonclinical operations, service line joint ventures, physician platform collaborations and ambulatory surgery centers.
2. Access to capital is not always the key driver for health systems that seek “partners.” In addition to capital, private equity collaborations often offer operational expertise and experience with respect to growth and scaling. From the perspective of health systems, business-building acumen is often what differentiates private equity partners.
3. Private equity groups look to collaborate with health systems that are aligned with their incentives and goals and are open, forward-thinking and concerned with the overall cost of care.