By Dana Jacoby
Dermatology, med spas, and big returns—here’s how PE is shaping the future of care
Specialty healthcare is the new frontier for private equity, with 2025 bringing a wave of deals across dermatology, med aesthetics, and beyond. But this space isn’t plug-and-play. It’s nuanced, high-stakes, and fast-moving. Here’s a brief overview of what’s trending at the moment.
The rise of boutique specialties
Private equity is zooming in on scalable, high-margin specialties like dermatology, medical aesthetics, pain management, and fertility. These “retail-like” services attract cash-paying patients and offer repeat business, making them ripe for roll-ups and platform building
Platform building over one-off deals
Rather than buying one practice at a time, investors are focused on building multi-site platforms with unified branding, shared tech, and operational efficiency. Platform strategies create faster scalability, plus, stronger exit potential.
Aesthetic medicine goes mainstream
Medical aesthetics isn’t just booming; it’s maturing. With treatments like injectables, skin resurfacing, and body contouring in high demand, PE firms are betting big on consolidating fragmented med spa markets and professionalizing service delivery.
Value-based care isn’t off the table
While specialties get the spotlight, PE firms aren’t ignoring the value-based care shift. Some are investing in specialty groups that pair fee-for-service revenue with longer-term value-based contracts, particularly in chronic disease management and musculoskeletal care.
Regulatory scrutiny is heating up
State and federal agencies are watching PE-backed healthcare deals more closely, particularly around ownership structures and patient outcomes. Investors need to structure deals carefully and build compliance into operations from day one.
Staffing woes impact acquisition strategies
The labor crunch is real—and private equity firms know it. Physician burnout, staff shortages, and high turnover are leading PE buyers to favor practices with strong retention rates, robust recruitment pipelines, and cultures that support clinician well-being, long-term engagement, and sustainable growth across multi-site operations.
Tech integration drives deal value
Practices that are digitally mature—think EHRs, AI diagnostics, telehealth, or analytics—are commanding higher valuations. Tech isn’t just a bonus; it’s a deal driver. Investors are seeking groups with scalable infrastructure.
Exit strategies get more creative
With IPOs slowing, PE firms are exploring other exit paths: recapitalizations, strategic mergers, and selling to larger PE platforms. The focus? Operational maturity, clean financials, a compelling growth story—and leadership teams that can scale efficiently in increasingly competitive and regulated environments.
Will you invest?
Healthcare private equity in 2025 is fast-moving and fiercely competitive. The real winners? Investors who understand not just the financial upside, but the operational and regulatory nuances. At Vector Medical Group, we help you deal with that complexity, so your next move isn’t just bold, it’s built to last.