Urgent Care Mega Trend #3: Private equity owned urgent care
Private Equity owned urgent care groups are expanding rapidly. With money to spend, they are paying high multiples for existing urgent care centers and building new centers from the ground up. Some focus on large urban markets and others on small rural communities, but they are having a huge impact, consolidating urgent care into very large groups. Urgent care owners should be cautious when selling to ensure that they are receiving adequate compensation for their existing practices and that they understand the fine print of ownership transfer agreements.
The trend toward private equity investment has certainly grown, as we’ve seen with many PV partners. But the shift may be moving even further toward hospital ownership, as explained in the “It’s a Win-Win for Healthcare as Hospital Systems Acquire Urgent Care Centers” blog post by Alan Ayers, Vice President of Strategic Initiatives.