Private Equity-Driven Consolidation within Neurosurgery and Neurology

Private Equity-Driven Consolidation within Neurosurgery and Neurology

Published February 2019

The neuroscience space represents one of the few physician specialties to remain relatively untouched by outside investment. With the majority of private practices comprising of 4 physicians or fewer, it remains one of the most fragmented specialties within physician services. Given the wide breadth of ancillary service offerings, increasing outpatient surgical volume, aging population, and the growing importance of neuroscience services to overall healthcare, there is significant opportunity in space for private equity led consolidation.

After experiencing high returns during the first wave of consolidation of physician practice management models in dermatology, ophthalmology, and IPM sub-specialties, investors are now contemplating what the second wave of PPM consolidation will look like. Leveraging our discussions with private equity firms and various neuroscience groups across the country seeking to replicate the success seen in other subspecialties, Provident predicts neurology/neurosurgery will be a major focus for private equity firms within the next 6-18 months.

Report Summary
• Introduction
• Private Equity Investments Explained
• Why Are Practices Interested in Private Equity Partnerships?
• Neuroscience Macroeconomic Trends
• Private Equity Led Consolidation Opportunity
• Capturing the Continuum of Neuroscience Care
• Transition Towards Outcome Based Care
• Consolidation Trends In Parallel Specialties
• First-Mover Advantage
• Concluding Thoughts