Private equity companies continue to face mounting economic and regulatory challenges impacting the healthcare sector, according to Pitchbook’s second quarter “Healthcare Services Report.”
Five notes from the report, released Aug. 14:
1. Healthcare service deal count was down 18.5% year over year in the second quarter. Pitchbook attributed the drop to weakness across generalist and multispecialty providers, physician practice management companies, and skilled care & behavioral health.
2. The healthcare sector was negatively impacted by interest rate hikes and lower healthcare service utilization during the first half of the year.
3. Exit count in 2026 is on pace to be down 26.5% from 2025, with exit value falling to 30.9%.
4. Several states also continue to weigh and implement proposals to increase oversight of healthcare transactions and limit private equity and MSO structures.
5. Dental was among several sectors with aged inventories among private equity-backed companies, with at least 20 companies with holding times of at least seven years.
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