European countries spend on average 9% of their GDP on healthcare provision, and costs are rising at an average of 5% per year. Balancing increasing demand from ageing populations, new technologies and rising consumer expectations against the availability of financing and extra resources is creating a major dilemma for policymakers.
These dynamics present both significant opportunities and risks for the private sector. Further growth in public sector outsourcing and private pay initiatives are likely, but they will come with potentially tighter regulation and reimbursement pressures. To complicate things further, European countries have different regulatory, reimbursement and cultural factors that create fragmented markets.
We believe that there will be excellent growth prospects and consolidation opportunities for private sector players that can offer flexible, efficient and innovative business models in this evolving environment.
Bridgepoint has substantial experience of investing in global healthcare businesses headquartered in Europe that are seeking capital for sustained growth. In the last ten years we have invested €1.7 billion in 15 transactions with a total value of €5.4 billion in the healthcare sector.
We have been particularly active in sub-sectors such as:
