The number of private equity firms investing in gastroenterology practices and surgery centers doubled in 2019. As of the end of 2019, six PE firms were actively investing in the space with three new firms entering in the last three quarters of 2019.
As of the end of 2019, there were 25 private equity firms actively investing in ophthalmology practices and surgery centers. It is among the most active physician practice consolidations currently taking place in the United States.
Is gastroenterology the next darling of private equity? Large GI practice acquisitions exploded in 2019, tripling that of the prior three years. Expansion to new geographic areas doubled in each of the last three quarters of 2019. We see this activity accelerating in 2020 when a significant number of new private equity investors enter the market and physician sellers see high demand for their practices.