Private equity’s relationship with physician groups is maturing. While deal volume has cooled since its 2021 peak—pressured by labor shortages, reimbursement cuts, and post-COVID realities—investor interest hasn’t disappeared. Instead, it has evolved.
The old playbook of pure buy-and-build is giving way to a more sophisticated model: performance-driven, tech-enabled, clinician-aligned platforms built for long-term value and strategic exits.
Today’s winning physician groups look less like loose networks of practices and more like integrated enterprises. Investors are prioritizing organic growth, repeatable ancillary strategies, and making physician groups “employers of choice”—not just acquisition vehicles. AI, analytics, and centralized infrastructure are now essential to reducing administrative burden, improving revenue cycle performance, and stabilizing margins.
At the same time, the buyer universe is expanding. Beyond traditional PE-to-PE exits, distributors like Cardinal Health, McKesson, and Cencora are emerging as serious acquirers, signaling a broader strategic appetite for scaled physician platforms—especially in specialties with complex drugs, diagnostics, or care coordination needs.