Private Equity Health Care Acquisitions – January 2022
Summary
In January 2022, private equity firms focused heavily on consolidating eye care, dental services, and medical staffing in the US. The report highlights the use of platform companies for add-on acquisitions and notes concerns regarding cost-cutting in dental services and exorbitant pricing in nursing staffing.
Key insights
- Private equity firms showed significant investment interest in eye care, dental services, and medical staffing in January 2022. In the eye care sector, firms acquired at least six companies, all of which were add-on acquisitions using platform companies to consolidate smaller providers.
- Private equity firms acquired at least nine dental companies in January 2022, primarily through Dental Services Organizations (DSOs). Private equity dominance in this market is extensive, with nine of the top ten DSOs and 27 of the top 30 DSOs in the US being private equity-owned, representing 84% of practice locations affiliated with the top 30 firms.
- There are concerns that private equity-owned dental companies utilize cost-cutting measures that negatively impact patient care, such as understaffing and the promotion of expensive or medically unnecessary procedures to increase patient volume.
- Three healthcare staffing companies were acquired in January 2022: AccessRN (by RiverGlade Capital), Alto Healthcare Staffing (by Littlejohn Capital), and Favorite Healthcare Staffing (by Onex Partners). Favorite Healthcare Staffing is identified as the eighth largest healthcare staffing firm in the US.
- Private equity-owned staffing companies have faced criticism for charging higher rates than hospitals due to limited regulation, which can lead to high medical bills for patients. In January 2022, nearly 200 members of Congress requested that the White House investigate staffing agencies for potential consumer protection law violations and "anticompetitive activity" regarding pandemic-era rates.
Cite the original document
- APA
- Private Equity Stakeholder Project (2022). Private Equity Health Care Acquisitions – January 2022. https://pestakeholder.org/news/private-equity-health-care-acquisitions-january-2022/
- Chicago
- Private Equity Stakeholder Project. Private Equity Health Care Acquisitions – January 2022. 2022. https://pestakeholder.org/news/private-equity-health-care-acquisitions-january-2022/.
- Wikipedia
- {{cite report |author=Private Equity Stakeholder Project |title=Private Equity Health Care Acquisitions – January 2022 |date=1 March 2022 |url=https://pestakeholder.org/news/private-equity-health-care-acquisitions-january-2022/ |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{privateequitystakeholderproject2022private, author = {{Private Equity Stakeholder Project}}, title = {{Private Equity Health Care Acquisitions – January 2022}}, institution = {Private Equity Stakeholder Project}, year = {2022}, month = mar, url = {https://pestakeholder.org/news/private-equity-health-care-acquisitions-january-2022/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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