Opportunities in an evolving market

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Ash Shehata

Principal, National Sector Leader for HCLS, KPMG US

+1 513-763-2428

Analysis of the 2019 KPMG/Leavitt Partners Health Care and Life Sciences Investment Survey sheds light on how key disruptors, prevailing market trends and evolving policies will impact the 2019 investment arena. The purpose of this paper is to help discerning investors better understand opportunities amid the evolving forces at play in the health care and life sciences industry.

We asked investment professionals to answer questions about several health care subsectors in which they have expertise. Upon examining the data, we divided the subsectors into three categories based on level of investment interest: the new frontier (highest investment interest), the scale seekers (moderate investment interest), and the foundation (lowest investment interest).

The new frontier

Health care information technology (HIT) and care management solutions for risk-bearing providers, which include many businesses that are emerging or growing in utilization, received the highest level of investment interest by survey respondents.

The scale seekers

Home health, retail-centric medical groups, primary care physician medical groups, and specialty physician medical groups, which have the opportunity to drive down their operational costs with consolidation and scale, garnered a moderate level of investment interest from survey respondents.

The foundation

Health plans and hospitals, which are the necessary traditional pillars of the health care industry and are searching for new ways to transform themselves in an evolving health care ecosystem, had the lowest level of investment interest by survey respondents.

Even with market uncertainty as a growing headwind, we expect to see significant health care and life sciences investment activity continue in 2019. Despite continuing ACA challenges, as well as the ongoing evolution of regulations, reimbursement policies and delivery models, there is significant optimism for increased growth and efficiency opportunities in health care and life sciences organizations. For more information, read the full report.