Private equity investment in physician practice management companies is on track to fall by roughly half in 2026, signaling a significant shift in the healthcare M&A market. According to PitchBook data cited by STAT, physician practice management deals have declined from a peak of 851 deals in 2021 to 105 in the first half of 2026. The slowdown comes as more than a dozen states have introduced laws increasing oversight of private equity transactions in health care.
The decline reflects growing regulatory scrutiny around PE ownership of physician practices, as well as broader changes in the investment environment. These laws are making deals more complicated and potentially less attractive by increasing the level of review and oversight required before transactions can close.