In a recent episode of “Healthcare Download with VMG Health”, Jen Johnson, COO and Managing Director of VMG Health, sat down with Greg Koonsman, CEO and Founder, to discuss private equity in healthcare.
In the podcast, Koonsman and Johnson explore the increasing flow of capital and the emerging pattern of strategic collaborations between private equity (PE) firms and health systems. Additionally, they address possible activity in 2024 and delve into the projected surge in groundbreaking partnerships. They underscore the potential of these collaborations to boost growth, facilitate access to capital, and improve the overall quality of healthcare services.
Key points from the podcast include:
Shift in Asset Allocation: Investors have increased their allocation towards healthcare over the last 20 years. In the late 90s, approximately 5% of funds were directed towards healthcare. Today, it’s 20%.
Growth in Private Capital Funds: The number of private capital funds has risen from 3,000 to more than 13,000, representing more than $10 trillion in committed capital.
Evolution of Partnerships: There has been a growing trend of PE interest in health systems and healthcare, leading to innovative collaborations.
PE Firms and Health Systems Growth Objectives: PE firms need to understand the objectives and strategies of health systems, considering the differences in their long-term goals. Successful partnerships will leverage PE’s capital and management expertise to make health systems’ goals a reality.
Get the full audio (and transcript) here: Private Equity in Healthcare: Navigating Trends & Partnerships with Greg Koonsman.
