By Valeria Ruiz, Opus Connect
At Opus Connect’s Healthcare Investors Roundtable on Thursday, December 12th, moderators Michael George, Healthcare Partner, and Domenic Segalla, Principal and Market Leader in Healthcare Advisory at Withum, led a discussion that shed light on the critical trends shaping the evolving landscape of healthcare investment for 2025.
As the healthcare industry moves into 2025, investors are cautiously optimistic about opportunities on the horizon. Several key trends and challenges are poised to influence mergers and acquisitions (M&A) activity and investment strategies. From potential deregulation to a growing interest in behavioral health and telehealth, the economic indicators seem to signal that the health sector is set for significant developments.
How Deregulation Could Drive Healthcare Investments in 2025
A shift in the political administration could pave the way for deregulation, which may spur increased M&A activity. Investors are particularly keen to see how new appointments will impact healthcare policies surrounding reimbursement, inflation, and interest rates. Greater clarity in these areas could help reduce the uncertainty that has slowed transactions in recent years. If deregulation takes hold, it could create a more favorable environment for deal-making and strategic growth across various healthcare subsectors.
Top 2025 Investment Opportunities: Behavioral Health and Telehealth
Behavioral health and telehealth services continue to draw strong investor interest. The pandemic accelerated the adoption of telehealth, and while its use has declined in some areas, behavioral health and therapy has remained a key area of demand for remote services.
These sectors stand out due to their scalability, efficiency, and potential for measurable patient outcomes. However, regulatory uncertainties, such as the pending revisions to the Ryan Haight Act, remain a hurdle. Resolving these issues could unlock significant investment potential in virtual healthcare solutions.
Why Specialty Practices Are Leading Healthcare Investments in 2025
Investors are focusing more on specialty healthcare practices and outpatient services, while hospitals and health systems face ongoing challenges. Rural and community-based hospitals, in particular, are seen as high-risk due to financial and operational difficulties. In contrast, specialty practices offer predictable returns and opportunities for operational efficiencies. This shift reflects a broader trend toward lower-risk, high-value assets in the healthcare space, where niche services provide greater investment stability.
Is Value-Based Care Still a Viable Investment for 2025?
Despite ambitions to transition to value-based care (VBC) models, skepticism about widespread adoption remains high. The 2030 deadline set by CMS for VBC implementation is fast approaching, yet progress has been slow.
Effective VBC models require a consistent national framework, which is currently lacking. As a result, many investors are hesitant to commit significant resources to this business business model. The lack of clear momentum has left the future of VBC uncertain, with questions about whether the industry can meet CMS’s expectations in time.
Key Healthcare Investment Sectors to Watch in 2025
Looking ahead, healthcare investments will be defined by strategic opportunities in behavioral health, telehealth, and specialty practices. These areas are positioned to benefit from technological advancements and innovation, operational efficiencies of healthcare organizations, sustainable practices and favorable demographic trends. Simultaneously, potential deregulation could drive M&A activity, providing growth pathways for investors who can navigate the healthcare market’s complexities.
Stay Engaged with Healthcare Investment Insights
As the healthcare industry prepares for 2025, the balance of political clarity, regulatory changes, and market demand will play a crucial role in determining value creation and subsequently, investment success. Investors who remain agile and focus on high-potential subsectors will be best positioned to seize the evolving opportunities in healthcare.
Join us at our upcoming event to be part of these timely and engaging conversations with experts from the industry sharing their unique insights! Check out our calendar here or contact us for more information at valeria@opusconnect.com
