The Newest Physician Practice Consolidation Frontier

Cardiology remains one of the few highly fragmented physician group markets primed for widespread consolidation. Although cardiology as a specialty has experienced hospital-led consolidation over the past several years, private equity firms have only recently begun creating investment theses in the specialty. There are several factors that make the cardiology industry well positioned for investment and consolidation.

Changing US Demographics Intensifies Demand

Changing US demographics are expected to drive demand for cardiology services at a more rapid pace than in the past. Over the next five years, the number of adults 65 and over is expected to rise from 56.1 million in 2020 to 65.2 million in 2025, and the 65-and-older age group’s share of the total population will rise from ~17% to ~19%. This population is also the most prone to heart disease risk factors, such as hypertension and obesity.

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