Private equity in ophthalmology and optometry: a time series analysis from 2012 to 2021

Area of Science:

• Ophthalmology
• Optometry
• Health Economics
• Business Strategy

Background:

• The healthcare industry, particularly ophthalmology and optometry practices, has seen increasing interest from private equity firms.
• Understanding the trends and patterns of these acquisitions is crucial for stakeholders in the eye care sector.

Purpose of the Study:

• To identify temporal and geographic trends in private equity (PE)-backed acquisitions of ophthalmology and optometry practices in the United States.
• To analyze acquisition data from 2012 to 2021, examining practice types, locations, and provider details.

Main Methods:

• A cross-sectional time series analysis was conducted using acquisition data from 2012 to 2021.
• Data were compiled from financial databases, industry news, and press releases.
• Linear regression models were employed to assess acquisition rates and trends.

Main Results:

• From 2012 to 2021, monthly PE acquisitions increased significantly, by 0.947 per year (P < 0.001).
• Texas, Florida, Michigan, and New Jersey were top states for PE acquisitions.
• Acquisitions continued to rise, particularly in 2021, indicating sustained PE interest.

Conclusions:

• Private equity acquisitions in ophthalmology and optometry have shown a consistent upward trend from 2012 to 2021.
• Companies are increasingly employing regionally focused strategies for practice acquisitions.
• The findings suggest a dynamic market with ongoing consolidation within the eye care sector.