An increased number of investors are channeling their funds toward treatment centers, driven by the increased market for the centers under The Affordable Care Act, according to Reuters.
The Affordable Care Act has expanded healthcare coverage, opening the option of treatment to millions of people who could not previously afford rehabilitation.
The treatment industry has grown to $35 billion a year, from $21 billion in 2003. That fast growth and expansion has caught the eye of many investors.
“The appetite among private equity firms for these assets tends to be greater because there is less payer reimbursement risk and the growth opportunities are so great,” said James Clark, a managing director at investment bank Harris Williams & Co.
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