Opportunity Areas for Private Equity Investment in Ophthalmology Practices
As of the close of 2019, several key geographies have experienced little or no private equity investment yet offer compelling opportunities.
Eastern Midwest – West Pennsylvania through most of Illinois is relatively open. Yet, many opportunities exist here including ASC acquisitions in non-CON states. Hospital dominance can make some of these markets more challenging.
Texas – Large, highly populated, and fast-growing, Texas presents an excellent opportunity market. We expect several large acquisitions going forward as investors find the right physician partners.
Northern California and the Pacific Northwest – An investor could be very successful in Northern California through effective partnership with the many small practices there. The Pacific Northwest is home to some large players that could be initial platform investments.
Central Midwest and Mountain Regions – Though less concentrated, these areas are generally stable and offer strong opportunities for investors willing to work over a greater footprint. Building scale through add-ons here may prove challenging.
This article is an excerpt from our recently published White Paper: Ophthalmology 2020 Outlook - Private Equity Investment and Consolidation Strategies.