With health care reform creating more covered beneficiaries (many of whom do not have a primary care physician), a shortage of physicians and advance practice providers, and an emerging financial incentive to keep patients out of the ER, urgent care is fast becoming a key component in the health care delivery system. What makes the sector unique is the breadth of acquisition strategies – and buyers – in play. While there are many private equity sponsors pursuing traditional roll-up strategies, we also are seeing hospitals, physician groups, and insurers get in the action – not just for the revenues urgent care can generate, but also for the role it can play as an entry-point into the system that can be leveraged to direct patients to the most effective venues of care.
Market Data
Over the past 18 months, hospitals and private equity accounted for 76% of urgent care deal activity, leaving a small fraction for strategics (mostly Concentra) and others.
