Healthcare (Private)

Q1 of 2023 saw 51 deals in the Healthcare (Private) sector. This was a significant increase from the previous quarter (32 deals) and the highest since Q1 2021 (55 deals). Notable deals executed during Q1 2023 include:

• The private Royal Buckinghamshire Hospital was acquired by New Fostcote Hospital Limited for an undisclosed amount.
• Clevermed was acquired by System C Healthcare, via its financial sponsor CVC Capital Partners, for an undisclosed amount.

The deals activity in this sector has been influenced by:

• NHS – with the NHS coming under increased strain due to the pandemic-related backlog, there remains significantly opportunity for the private sector to provide capacity for routine procedures
• Increased demand – as waiting lists extend, there is growing demand for private treatment, making the UK market more interesting to international investors.

Although restructuring activity remains moderate across the sector, this marks significant variability across sub-sectors. Whilst private hospitals perform well, the care sector continues to struggle against a backdrop of acute labour shortages, sliced local authority funding and high operation costs.