Healthcare EBITDA Multiples: 2025 Dashboard
Healthcare M&A has entered a recalibration phase in 2025. Record activity and inflated pricing during the post-COVID period has now moderated. Transaction multiples have normalized, but not collapsed.
Strategic buyers remain highly active, focusing on defensible care delivery models, scalable technology, and margin visibility. Private equity continues to pursue platform consolidation, particularly in physician services and medtech. Across subsectors, valuation spreads have widened: essential-care providers hold steady while elective and innovation-driven businesses continue to command premiums.
The following dashboard consolidates current healthcare EBITDA and revenue multiples across private and public operators, providing investors, executives, and founders with a real-time snapshot of value expectations in today’s market. This data comes from external research, and in some cases, our own experience. Each transaction is highly nuanced, so the data below is presented for educational purposes only.
Key Takeaways:
Across publicly traded healthcare services companies, the median EV/EBITDA multiple declined to approximately 11.5x in 2025, down from 14.5x the prior year.
Cardiology and ophthalmology remain the highest-valued specialties in 2025
Platform transactions command 3–5 turns higher than add-on deals
Practices with strong payor diversification and ancillary revenue achieve multiples up to 2x higher
FOCUS Investment Banking clients achieve notably higher valuations (relative to inbound offers) due to pre-market optimization and competitive processes
EBITDA Multiples By Healthcare Subsector
Valuation multiples continue to diverge sharply between essential and elective care. While core service providers such as hospitals and medical practices maintain stable mid-single-digit multiples, elective and technology-driven categories command premiums.
| Subsector | $1–3M EBITDA | $3–5M EBITDA | $5–10M EBITDA | 2025 Trend Notes |
|---|---|---|---|---|
| Addiction treatment | 6.1x | 7.5x | 8.8x | Lower-growth, asset-heavy; steady valuations tied to real estate |
| Dermatology | 6.4x | 8.3x | 9.3x | Attractive payor mix; steady platform roll-ups |
| Hospitals | 6.3x | 8.2x | 9.7x | Resilient through downturn; essential-care premium widening |
| Medical device | 6.7x | 8.3x | 10.4x | Innovation-driven; buyers favor patented product lines |
| Medical practices (multi-specialty) | 5.6x | 7.1x | 8.8x | Density and ancillaries drive premium outcomes |
| Medtech (software & digital health) | 8.2x | 10.2x | 14.4x | AI integration and SaaS margins sustain demand |
| Plastic surgery | 7.3x | 9.7x | 11.3x | Highest variance; elective demand sensitive to macro shifts |
| Senior living | 4.7x | 6.2x | 7.4x | Lower volatility; tied to demographics and facility ownership |
| Public operator median (Q2 2025) | — | — | 12.4x | Reflects TEV/EBITDA for public comps |
*Intended for educational purposes only and not a guarantee of any outcome.
Key Findings:
Mid-market dominance: Providers in the $3–10M EBITDA range command the strongest pricing leverage, aligning with private equity’s preferred platform size.
Premium concentration: Only three subsectors, plastic surgery, Medtech and medical devices, consistently exceed 10x EBITDA, though both show cyclical sensitivity tied to elective demand.
Stability tiers emerging: Hospitals, senior living, and addiction treatment maintain the narrowest multiple ranges, reflecting predictable reimbursement and real-asset backing.
Representation matters: Sellers advised by experienced M&A firms achieved, on average, 23% higher multiples, underscoring the impact of professional positioning, a competitive auction environment, expert negotiation, and buyer access.
Valuation bifurcation: Essential care businesses are regaining investor favor in late 2025 as buyers rebalance portfolios toward lower-risk, reimbursement-secure sectors.
Revenue Multiples For Private Healthcare Companies
Revenue multiples show a similar hierarchy to EBITDA, with premium subsectors driven by scalability and ancillary services. Smaller providers remain disadvantaged by scale inefficiencies and limited negotiating power with payors. Transactions above $10M in revenue typically attract institutional buyers or strategic health systems able to justify higher forward earnings multiples.
Since most transactions are priced on a multiple of EBITDA, consider the data below for reference purposes. We see wide variation in revenue multiples across transactions due to margin differences, especially in small and mid-sized provider groups. Medtech revenue multiples vary based on the specific product/service and revenue durability.
| Subsector | $1–5M Revenue | $6–10M Revenue | $10–50M Revenue |
|---|---|---|---|
| Addiction treatment | 1.3x | 2.0x | 2.5x |
| Dermatology | 2.2x | 3.1x | 3.5x |
| Hospitals | 1x | 1.5x | 2x |
| Medical device | 3.6x | 4.4x | 5.0x |
| Medical practices | 2.6x | 3.3x | 4.1x |
| Medtech | 3.24x | 4.0x | 4.65x |
| Plastic surgery | 2.6x | 3.5x | 4.2x |
| Senior living | 2.0x | 2.5x | 2.9x |
Key Findings:
Revenue scaling drives premium outcomes: Companies exceeding $10M in annual revenue often see a 1.5x–2x jump in valuation multiples as buyers price in infrastructure maturity and margin consistency.
Ancillary income is critical: Facilities or practices with imaging, diagnostics, or ASC ownership can achieve 25–40% higher revenue multiples than peers limited to professional fees.
Technology-enabled care leads pricing: Medtech and digital-health platforms sustain elevated revenue multiples near 4–5x, supported by recurring SaaS models and lower labor intensity.
Elective demand still volatile: Plastic surgery and dermatology valuations remain highly sensitive to discretionary consumer spending and broader economic confidence.
Steady floors for essential care: Hospitals and senior living communities form the valuation base of the sector, providing defensive benchmarks for strategic buyers managing portfolio balance.
Market Dynamics and Buyer Landscape
Deal activity in healthcare normalized in 2025 after record highs in 2021–2022. Over the last 12 months, 1,106 healthcare transactions closed, down from 1,320 the prior year, a 16% year-over-year decline. Despite lower volume, total deal value remained strong, driven by large-cap strategic acquisitions across biopharma and medtech.
Strategic acquirers prioritized pipeline replenishment and essential-care expansion, while private equity continued to target mid-market platforms with scalable administrative infrastructure.
| Buyer type | Share of 2025 deals | Primary focus | Notable transactions |
|---|---|---|---|
| Strategic buyers | 86.3% | Therapeutics, service platform expansion | Johnson & Johnson – Intra-Cellular Therapies ($14.7B); Novartis – Anthos Therapeutics ($3.1B) |
| Financial sponsors | 11.7% | Provider services, distribution, medtech roll-ups | Patient Square Capital – Patterson Companies ($3.6B) |
| Cross-border acquirers | 2.0% | Specialty pharma, device innovation | Zimmer Biomet – Paragon 28 ($1.35B) |
Key Findings:
Strategic control of the market: With over 86% of 2025 healthcare deals led by strategic acquirers (including private equity-backed strategics), consolidation is increasingly driven by pipeline expansion and service integration rather than pure financial arbitrage.
Private equity recalibration: Sponsors remain active but are shifting toward smaller, mid-market platforms where operational improvements can yield faster multiple expansion.
Cross-border selectivity: International acquirers continue to target niche medtech and specialty-pharma assets, prioritizing intellectual property and regulatory positioning.
High-value clustering: Roughly 70% of transaction value originated from fewer than ten large deals, highlighting persistent concentration at the top end of the market.
Strategic premium sustained: Corporate buyers in therapeutic and technology-driven sectors paid 20–40% higher multiples than financial sponsors on a like-for-like EBITDA basis.
Public Operator Performance: Q2 2025
Public healthcare operators posted mixed performance amid policy shifts under the One Big Beautiful Bill (OBBB) and labor cost pressures. A review of 16 public companies across acute, post-acute, and other service sectors found rising consensus EBITDA estimates despite macro uncertainty.
Despite cost volatility, equity markets signaled optimism for EBITDA recovery into FY2026, particularly among integrated operators and diversified health systems.
| Sector | Enterprise value change (Q2 2025) | Consensus FY25 EBITDA trend | Key observations |
|---|---|---|---|
| Acute care hospitals | +4.1% | Upward revisions (Tenet, HCA, UHS) | All outperformed EPS expectations despite tariff headwinds |
| Post-acute care | +5.5% | Upward revisions (Encompass, Enhabit) | Multiples expanded as demand for rehab & home health increased |
| Other healthcare operators | +6.3% | Mixed revisions | Behavioral and imaging operators drove multiple expansion |
| Overall | +$14.3B EV (+6%) | Higher forward multiples in 13/16 companies | 68% of EV growth attributed to multiple expansion |
Key Findings:
Multiple expansion returns: Thirteen of 16 public operators saw higher implied forward multiples between July and August 2025, signaling renewed market confidence after a flat 2024.
Equity-driven optimism: Roughly 68% of enterprise value growth in Q2 2025 stemmed from multiple expansion rather than EBITDA increases, suggesting investors are repricing healthcare resilience.
Hospital sector leadership: Acute-care operators like HCA and Tenet drove sector gains, reaffirming buyer appetite for scale and reimbursement stability.
Selective enthusiasm in post-acute care: Strong performance from Encompass and Enhabit points to enduring demand for rehabilitation and home-health assets amid cost-containment pressures.
Forward read-through to private markets: Public-market expansion is expected to lift mid-market private valuations by 0.5–1.0x through early 2026, especially for multi-site providers with clear earnings visibility.
Trends Shaping Valuation Premiums
GLP-1 adjacency plays
The explosive demand for GLP-1 therapies in diabetes and obesity is generating premium valuations for companies addressing related conditions (e.g., sleep apnea, cardiovascular disease). Investors are shying away from GLP-1 concentrated companies, however we see increasing interest in similar cash-pay models, especially the longevity space (including hormone therapy).
AI and healthcare IT integration
SaaS platforms like CentralReach continue to attract acquirers for their ability to automate workflows, improve clinical throughput, and enhance reimbursement efficiency.
Physician practice management (PPM) consolidation
PE-backed roll-ups in oncology, dermatology, ophthalmology, and other specialties remain active. Buyers pay top-quartile multiples for platforms with payor diversification, ancillaries, and a deep provider bench. We expect to see increasing recaps, including consolidation among platform organizations, in the coming years.
Medtech innovation
Premium pricing persists for robotics, imaging, and minimally invasive device developers. These assets demonstrate measurable clinical benefit and cost reduction.
Essential care resurgence
Hospitals and primary-care networks regained investor favor as defensive assets. As inflation persists and consumer discretionary spend tightens, buyers favor stable reimbursement models over elective procedures.
2025 Outlook
The healthcare M&A environment remains bifurcated between innovation-driven growth and defensive essential-care stability. Key themes expected into 2026:
- Rebound in deal volume as sidelined dry powder is deployed.
- Private equity concentration in mid-market and carve-out transactions.
- Margin expansion through AI-driven cost reduction.
- Continued regulatory scrutiny from the FTC and DOJ, particularly in health-system consolidation.
Putting It Together: Maximize EBITDA, Expand The Multiple, Protect Value
Valuation is the product of what you earn, how you earn it, and who is bidding. This article shows where your specialty tends to price; the levers and checklists show how to move up the curve. With thoughtful normalization, a crisp growth plan, and a competitive process targeting the right acquirers in your niche, it’s realistic to capture top-quartile outcomes, even in a cautious credit environment.
If you’d like more information
Sources
- Eric Yetter (FOCUS Investment Banking), “How to Value a Medical Practice: What Really Matters,” FOCUS Bankers (July 31, 2023)
- FOCUS Investment Banking – Healthcare Practice Management Updates (Ophthalmology 2024 Market Overview)
- First Page Sage – “Healthcare EBITDA & Valuation Multiples: 2025 Report,” Feb. 6, 2025
- Chip Fichtner, Large Practice Sales – “2024 Results and 2025 Practice Values (Dental)” (Jan. 9, 2025)
- Scope Research – “Med Spa and Aesthetics Valuation Multiples and M&A Trends 2025,” (Updated Aug. 6, 2025)
- Scope Research – “Behavioral Health: SUD Treatment Valuation Multiples and Trends 2025,” (May 7, 2025)
- Scope Research – “Autism Services & Pediatric Therapy Valuation Multiples 2024,” (May 17, 2024)
- Cascade Partners, Vision Care Market Update (Ophthalmology multiples by practice size, 2023)
- Physician Growth Partners, “State of Women’s Health Private Equity – Q1 2025” (White Paper)
- Solic Capital, “Physician Practice Management Q4 2020 Update” (Women’s Health platform valuations)
Prior to joining FOCUS, Mr. Snyder served as Managing Director and Physicians First, a boutique investment banking firm located in Nashville, TN. He completed a variety of healthcare transactions, many with private equity firms and PE-backed companies. In this role, he was responsible for business development and deal execution. His past clients include leading physician groups, healthcare facilities, and institutional healthcare investors.
Mr. Snyder began his healthcare career at Covenant Physician Partners (previously Covenant Surgical Partners) where he was promoted to Director of Operations. Covenant is a physician services company that acquires and operates ambulatory surgery centers and physician practices. The company also built and operated an outsourced pathology laboratory, an anesthesia business, and revenue cycle management company.
Based in Nashville, Mr. Snyder earned his M.B.A. from Vanderbilt University and his undergraduate degree from The University of Virginia. He is a FINRA licensed investment banker.
