2023 Year End White Paper

As 2023 drew to a close, the healthcare landscape encompassing Behavioral Health, Ambulatory Surgery Centers (ASCs), Medical Outpatient Buildings (MOBs), Life Sciences, and Construction, underwent significant transformations, reflective of both challenges and evolutionary progress within the industry.

In the behavioral health sector, a marked slowdown in mergers and acquisitions set the tone for the year. This trend, starting in late 2022, persisted throughout 2023, despite the looming specter of a recession and potential rate hikes. However, the sector rebounded with promising indicators for 2024, spurred by factors like the anticipated end of Federal Reserve rate increases and a rise in institutional loan volumes. A survey by Behavioral Health Business highlighted staffing as a critical issue, yet growth opportunities were identified in treating underserved populations and expanding mental health services. The year also saw a notable increase in telehealth services, underscoring its burgeoning role in the healthcare domain.

Meanwhile, the ASC industry was characterized by heightened acquisition interest, particularly from private equity firms. The challenges of recruiting and retaining both surgeons and staff were pivotal, leading to the emergence of strategic partnerships as a key solution and offering benefits such as improved payer contracts and operational support. Experts in the field advised ASC owners to focus on strategic partnerships and consider future acquisitions, anticipating a continued upward trajectory in this sector.