Published November 2021
Dating back to 2016 when Audax formed the first private equity-backed gastroenterology practice Management Services Organization (MSO) in the U.S. via its investment in Miami-based GastroHealth, the GI industry has been undergoing one of the most rapid consolidation curves Provident has observed to date across specialty medicine. Fast forward five years to the final quarter of 2021 and there are now nine private equity-backed investments in gastroenterology, with a physical presence in 25+ states.
As highlighted below, these nine MSOs operate with
locations across 50% of the continental United States. Most of these platforms have acquired other groups within their current states as well as pursued M&A opportunities regionally and nationally. At this stage in GI’s evolution, MSOs are often prioritizing transactions with leaders in other metropolitan areas and states to form “regional partnerships”, which can serve as the hubs for future partnerships with local practices and growth within a given market or state. Provident believes there could be the opportunity for new platforms to emerge within GI, but the current strategic universe is capable of consolidating most of the outpatient providers in the country as is.
- Introduction: The Current GI Landscape in Q4 2021
- Timeline of Notable Activity: 2016 – 2021
- Looking Forward: Opportunities & Headwinds
- Concluding Thoughts from Provident
- About Provident & Related GI Experience