While primary care tends to be overlooked by investors, the industry is shifting to give it the interest it deserves. Regulatory changes, a focus on value-based care, and the potential to achieve both scale and savings, simultaneously, all have investors looking closer at primary care opportunities.

On this episode of The Banker's Corner, McGuireWoods' Geoff Cockrell discusses investing in primary care with Craig Sager, Director at Provident Healthcare Partners. In his current role, Craig leads sell-side M&A in primary care and behavioral health. 

Investors in primary care are typically private equity firms that have shorter timelines on when they expect to see a return on their investment. Alternatively, sometimes payer-owned entities invest. They have the ability to make long-term plays that might take decades to show a return. 

“These consolidations in primary care, in particular, have an easier to envision backend scenario. You have these massive companies like CVS or UnitedHealthcare, that can be those backend purchasers. It changes some of the dynamics for the private equity investors as well,” says Geoff. 

Craig also shares his insights on investors working with fee-for-service healthcare groups. Some investors may find it too risky and prefer to wait for the transition to value-based care before investing. Others see an opportunity to enter at a lower price and facilitate the conversion to value-based care. 

Looking at the end of 2023 and into 2024, investors can be confident that there is always going to be interest in this sector and there is capital available to be deployed. 

 

Featured Guest

Name: Craig Sager

What he does: Craig Sager is a Director at Provident Healthcare Partners. He has over nine years of healthcare M&A experience via principal investing, corporate development, and sell-side advisory. He has executed over 30 transactions on both the buy-side and sell-side.

Organization: Provident Healthcare Partners

Connect: LinkedIn

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