What's Happening?
Bain & Company has reported that healthcare private equity reached a record $190 billion in deal value in 2025. This surge was driven by a significant increase in large deals, particularly in the biopharma and provider segments, with healthcare IT playing a pivotal role. The report highlights that deal volume was the second-highest on record, with 445 buyouts, and an expected exit value of $156 billion. North America experienced a resurgence in large deals, with 26 transactions exceeding $1 billion by November 2025, nearly doubling the number from 2024. The provider and related services deal value increased by 57% from 2024 to 2025, driven by high-value deals in provider IT and services. Medtech deal value also nearly doubled to $33 billion,
with a 20% increase in deal volume.
Why It's Important?
The record-breaking performance of healthcare private equity in 2025 underscores the growing investor confidence in the healthcare sector, particularly in IT and medtech. This trend reflects a broader shift towards digital health solutions and value-based care, which are becoming increasingly important in the face of complex billing, workflow digitization, and interoperability challenges. The significant investment in healthcare IT and medtech indicates a strong belief in their potential for return on investment, driven by strategies like revenue growth and margin expansion. This development is crucial for the U.S. healthcare industry as it navigates post-COVID challenges, including labor shortages and reimbursement pressures. The focus on integrated care and value-based models suggests a strategic shift that could lead to more efficient and effective healthcare delivery.
What's Next?
Looking ahead, Bain & Company predicts continued robust activity in healthcare private equity, with investors needing strong value-creation strategies to achieve superior returns amid intense competition for assets. The report suggests that investors focusing on pricing, packaging strategies, and large-scale mergers and acquisitions in healthcare IT will be well-positioned for success. Additionally, there is potential for growth in specialties like gastroenterology and dermatology, where integrated care models are proving beneficial. As portfolios mature and exit pipelines build, the healthcare sector is expected to see sustained investment activity, particularly in areas that offer proven return-on-investment playbooks.
