Becker Private Equity & Business Podcast
Healthcare Private Equity Update with Holly Buckley of McGuireWoods LLP 4-9-25
Wed, 09 Apr 2025
In this episode, Holly Buckley, Chair of Healthcare at McGuireWoods, joins Scott Becker to discuss deal market trends, regulatory headwinds, and investor sentiment in healthcare.
Chapter 1: Who are the hosts and guests in this healthcare private equity episode?
This is Scott Becker with the Becker Private Equity and Business Podcast. We're thrilled today to be joined by Holly Buckley. Holly chairs the healthcare department at McGuire Woods. She serves on some boards and she works at the intersection of healthcare and private equity. She also helps to chair the Healthcare Private Equity Conference at McGuire Woods.
Chapter 2: What are the current trends and challenges in the healthcare deal market?
That's coming up May 14th and 15th in Chicago. Holly, there's been a ton of turmoil in the markets recently. What are you seeing and what should we take out of that as to the impacts on the deal market?
Thanks, Scott, and thanks for having me on. I'm actually coming at you live today from the KO 2025 Women's Healthcare Private Equity Summit here in Chicago. So I apologize if there's any background noise. So it's actually great to be at a conference right now and hear some of the discussion around what folks are seeing and how they're viewing the market.
Chapter 3: How is the regulatory environment impacting healthcare private equity?
And so I have a few thoughts just from hot takes from the conference so far and then a few thoughts on the federal level. In terms of what we're seeing in the market, I mean, I think one interesting observation is that healthcare provider services investing is likely somewhat tariff resistant.
While I think the overall market conditions are going to have somewhat of an impact in terms of the specific sector, it may be a better sector to be in than some others that are going to be much more greatly impacted. I think, though, there are very strong headwinds and or strong headwinds in terms of the regulatory environment at both the federal and state level for different reasons.
The federal level, it's really the uncertainty of the new administration. And on the state level, it's really around the transaction notices, both notice and consent that we're seeing a proliferation of. And we've talked about a number of other times. I think one of the other big headwinds we're seeing a lot of discussion around is just continued staff shortages and labor market issues.
Chapter 4: What sectors within healthcare are attracting private equity investment?
But we're maybe seeing some reduction in competition around certain assets, just given some reluctance to invest. I think we're seeing a lot of investors looking for investments with little or no exposure to government reimbursement. I think there's just so much uncertainty right now in terms of government reimbursement that
Investors are looking for areas where they're either a degree removed or in a different sector. One area that may not be surprising to have a lot of discussion at KO is women's health.
It's an area that I think that folks view as having a lot of potential, but a lot of assets are still more at the VC size, but a lot of interest in assets around women's behavioral health, lactation, apps, menopause, just I think a lot of potential in this area.
and then med spa we've talked about that's still an area with a lot of opportunity infusion and there's still a big focus on value-based care and then in terms of ppm where we've seen a fair amount of pullback the themes really are that it needs to be ppm plus like just rolling up businesses is not enough there needs to be a strong angle in addition to that as well as the key focus on
on culture and vision. But let me pause there and see if there are questions on any of those.
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Chapter 5: What is the atmosphere and sentiment at the Women's Healthcare Private Equity Summit?
Yeah, no, let me ask you this question. You're at a Women's Leadership Conference in Healthcare, Private Equity, and Private Equity. What's the general tenor? Are people sort of anxious about the market? Are they excited about the market? What's the general tenor? Are people just thrilled to visit either way and learn from each other. Give us a feel for that.
I know Lindsay Burton, who runs that organization, does an amazing job. Give us a sense of what the temperature is and what people are thinking and saying.
Yeah, I mean, look, I think there's always a general great vibe when you get to a women's investor conference. I think it's just an area where there frankly is not enough female representation yet. And so anytime you get a bunch of women together who are passionate about healthcare investing, there's a great vibe and a great excitement about visiting.
But I think in terms of the market, I mean, I don't think anyone's excited about it. I think that there's a huge amount of trepidation and anxiety. I think that the current environment is one where No one quite knows what any day is going to bring and folks are watching their stock portfolio crater or wildly bounce around.
So I wouldn't say anyone's excited about the current environment on a kind of macro level, but great excitement about getting together and visiting and optimism that better things are to come.
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Chapter 6: How do investors view the future outlook for healthcare private equity this year?
Good, good, good, good, good. And what do you see going forward this year? What's your sense? I know people are busy, but there's a lot of uncertainty in the markets. What's your sense of what we should expect going forward? Does a lot of it depend on if trade deals are done or not?
Yeah, I just don't know, Scott. I mean, I think that up until a couple of weeks ago, there was a fair amount of optimism. I think In the last week, I think a lot of things have been thrown into uncertainty.
I can give some slightly more concrete updates on some trends on the federal level, but I think in terms of the deal environment, I think much remains uncertain until we get some clarity in terms of what the tariffs are going to look like in the macroeconomic environment. But I think on the federal level, there are certain things that we can actually comment on.
On March 11th, the Senate confirmed Dale Slater as Assistant Attorney General for the U.S. Department of Justice Antitrust Division. I think we are anticipating still an active antitrust enforcement this year, although there's going to be a difference in approach from the Lina Khan era.
But we're still expecting broad antitrust scrutiny across deals, wage fixing, no-poach agreements, information sharing, and pricing. And I think that we do not think we'll see a reversal on the new Hotspot Rodino filing requirements, which took effect in February. We think they're going to kind of be here to stay. We think there's going to be a ramp up of False Claims Act enforcement.
The DOJ has signaled an aggressive stance on False Claims Act enforcement, which fits with the Trump administration's priorities of increasing government efficiency and rooting out waste, fraud and abuse. And so I think we'll see an aggressive enforcement climate. We are continuing to see a proliferation of executive orders addressing a wide range of healthcare issues.
We've been tracking them at the law firm and we're seeing executive orders around telehealth access and health equity, Medicare cost reduction, behavioral health infrastructure modernization, behavioral health access, as well as things like transgender care that kind of fit with the Trump agenda. and we expect to continue to see more executive orders coming out of the administration.
And then as far as Dr. Oz goes, he is the new CMS administrator. We are seeing a focus on Medicare Advantage and probably away from value-based care initiatives within traditional Medicare, which we were starting to see through the prior administration. So we think he'll really be focused on Medicare Advantage, and he's kind of pulling back some of the programs that were on traditional Medicare.
And so those are some of the things we know about on the federal level, and I think much remains kind of up in the air in terms of what will be coming next.
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