At least 10 private equity-backed healthcare providers in the U.S. will go public in 2022, up from six in 2021, according to a Pitchbook report released Dec. 16.
5 things to know:
1. Private equity firms are going after public listings for their companies more than they ever have before, according to the report.
2. Value-based care — when providers are reimbursed depending on the patient outcome instead of the volume of services — is becoming more popular and has bipartisan support. Arlington, Va.-based Privia Health and Long Beach, Calif.-based Agilon Health, which have both adopted value-based care and are backed by private equity firms, went public in 2021.
3. Healthcare providers are also using more technology to improve the patient experience and make care more accessible. One of these is Denver Colo.-based Everside Health, which has filed to go public, according to the report.
4. Home care, aesthetic dermatology, behavioral health, veterinary medicine and dental are also sectors in the healthcare industry that could see businesses going public backed by private equity companies, the report said.
5. If the streak in the public market ends, possibly because of a change in Federal Reserve rules, firms may move toward selling to sponsors or strategics, the report said. Sponsor-to-sponsor buyouts offer an easy transaction process for healthcare providers, and strategics — which include payers and hospitals — may want to stay level with industry trends and thus could be "willing buyers," according to the report.