INVESTMENT INSIGHTS

Healthcare Industry Report

The US healthcare industry is on the cusp of significant growth, driven by a burgeoning and aging population of over 340 million, alongside regulatory tailwinds and technological advancements.

INVESTMENT INSIGHTS

As we look to 2024, optimism surrounds emerging trends and investor interest in the industry’s future.

Generative Al and Digital Transformation

Generative Al and Digital Transformation

Studies show the potential of GenAl to address inefficiencies in healthcare spending, potentially eliminating a significant portion of $1 trillion wasted annually.

Regulatory Landscape

Regulatory Landscape

Recent regulation in healthcare has placed significant emphasis on several key areas, including accessibility, cost, transparency, medicare, and private sector involvement.

Emerging Healthcare Trends

Increased Outsourcing and Offshoring to Tackle Labor Shortages

10.8% CAGR

The US Hospital Outsourcing market is estimated to grow at a CAGR of 10.8%, reaching $351.64 billion by 2032 from $126.67 billion in 2022, according to Precedence Research.

Surge in Healthcare Consolidation

28%

of announced M&A deals cited financial distress as a factor in 2023, a notable increase from the 15% reported in 2022, per Kaufman Hall.

Increased Investment in Outpatient Services

16.9% Growth

The Centers for Medicare & Medical Services projects a substantial 16.9% growth in the demand for outpatient services among individuals aged 55 and above by 2025.

Rising Demand for Weight-loss Drugs

$105 billion

The global GLP-1 market is projected to grow from $36.6 billion in 2023 to $105 billion by 2029, achieving a CAGR of 19.2%

Transition from Fee-for-Service Model to Value-based Model

100%

The Centers for Medicare & Medical Services has set a goal to establish a value-based care relationship for 100% of traditional Medicare beneficiaries by the year 2030.

Funding and Investment Landscape

North America hosted the highest value of healthcare buyout deals in 2023, according to Bain & Company.

VC investors are favoring early-stage deals, resulting in smaller investment amounts spread across a larger number of companies, according to Silicon Valley Bank.

Among the healthcare sector, pharmaceuticals, drug development, and pharmaceutical distribution outperformed over the past three years.

The Healthcare sector witnessed a deal volume of 581 deals in 2024 so far, and a total disclosed deal value of $88 billion.

Dig deeper into SGAs Investment Insights Healthcare Industry Report to gain valuable insights into the rapidly evolving world of healthcare.

Dig deeper into SGAs Investment Insights Healthcare Industry Report to gain valuable insights into the rapidly evolving world of healthcare.

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