PE Healthcare Services Deal Count Heads for Lowest Since 2017, PitchBook Finds
Private equity deal count in healthcare services is on pace for its lowest level since 2017, with PitchBook projecting 674 deals annualized versus a 2018-2024 average of 903. Q2 2026 deals fell nearly 19% year over year, H1 deal value reached $17.8 billion, and exits are on pace to drop 26.5%. Physician practice management is hit hardest, with 71 Q2 deals and a projected 46% annual decline, as New York, Pennsylvania and Hawaii tighten transaction oversight. ASCs, staffing, diagnostic labs and fertility remain bright spots, and PitchBook expects a rebound.
PE-backed operators planning exits or add-ons need to know which segments still clear and which face longer regulatory timelines. PPM weakness versus ASC strength should shape platform and diligence strategy.
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How many healthcare services PE deals does PitchBook project for 2026?
PitchBook projects 674 annualized deals, based on 337 in H1 2026. That would be the lowest since 2017 versus a 2018-2024 average of 903.
Why are physician practice management deals declining?
PPM saw 71 deals in Q2, down from 89 in Q1 and 102 in Q4 2025, and is on track for a 46% annual drop. Increased state oversight in New York, Pennsylvania and Hawaii and weaker hospital buyer finances are cited drivers.
Which healthcare segments are still attracting PE deals?
Clinical staffing, diagnostic labs, ambulatory care, urgent and emergency care, elder care and fertility are bright spots. ASCs remain sought after as CMS expands reimbursable procedures.