A Recap: Investments in Specialty Practice Management / EHR Software

February 6, 2024

Stax hosted investment professionals from healthcare-focused private equity firms in New York to discuss investment themes in specialty-specific practice management / EHR software. The event was co-sponsored with investment banking advisory firm Evercore and regulatory and reimbursement advisory firm Farragut Square Group. The discussion was facilitated by Stax Healthcare group lead Rob Larson.

Demand for purpose-built specialty practice management software has grown over the last ~5-10 years as these solutions continue to take share from large incumbents with limited specialty workflows. Private capital deal activity has supported growth and innovation as there is a broad range of strategies to pursue by software type or medical specialty.

Stax’s breakfast briefing took a deeper look at considerations for evaluating investment in the space, including common pitfalls we’ve seen supporting transactions over the years.

In addition, Evercore provided recent transaction history and valuation multiples, as well as identifying assets expected to come to market in the next 12-24 months. Further, Farragut Square Group added commentary covering regulatory considerations, including reimbursement expectations and their potential implication to investment strategies.

The discussions covered the following topics:

Specialty practice management / EHR software deal market and trends
Entry strategies for vertical platform builds or horizontal specialty expansion
Specialties to watch and considerations during the diligence process
Recent transaction history and assets expected to come to market
Regulatory and reimbursement trends and their implication for specific specialties

Stax has deep expertise across the healthcare IT and services ecosystem. Reach out to our dedicated experts and partners with any questions!