Against that backdrop, we fielded this year’s study, which included participation from 192 leaders across many of the largest healthcare services companies as well as small and mid-sized private companies and prominent investment firms. The study examines their perspectives on capital markets, strategic priorities, industry and regulatory outlook, applications of artificial intelligence and other key themes shaping the industry.
Our Central Findings:
- Most forms of capital are expected to be more accessible in 2026, relative to the prior year, with the largest increase in private equity and growth equity, followed by IPOs and continuation vehicles. Companies must be scaled, fast-growing and profitable to successfully IPO in the current environment.
- The pace of private equity platform and bolt-on acquisitions is expected to accelerate over the coming year, while views are split on whether large cap consolidation and corporate carve-out activity will increase. Greater alignment between buyer and seller price expectations and clarity regarding the healthcare policy outlook would serve to catalyze strategic activity.
- Private equity activity—including platform acquisitions and exits, bolt-ons for existing portfolio companies and continuation vehicles—is expected to increase over the coming year. However, views remain split on whether strategics and private equity firms will increasingly partner to acquire targets.
- Organic growth has emerged as the top capital allocation priority for the vast majority of healthcare services leaders, while M&A activity remains a secondary focus in the current strategic landscape.
- Increased AI adoption is the force most likely to transform healthcare services over the next decade, followed by the shift of care to alternative sites. AI is predicted to drive the most significant improvements in areas such as revenue cycle management, administrative operations and clinical decision support. However, resistance to behavioral change, technological inadequacy and unclear return on investment remain key barriers to adoption.
- Healthcare services leaders expect the administration’s posture to become less favorable toward Medicaid funding, PBM rebates and Affordable Care Act (“ACA”) exchange subsidies, but are divided about the administration’s impact on Medicare Advantage payments, value-based care and antitrust.
- A plurality of healthcare services leaders surveyed do not expect managed care insurance companies to fully recover from elevated levels of MA utilization or Medicaid rate–acuity mismatch before 2028 at the earliest, with many believing that these pressures are the “new normal” and will never reverse.
Download the full study to learn more.
