The growing cardiology subsector is one of the most sought-after and competitive specialties for healthcare investors.
Stemming from an aging population and growing obesity demographic trends, demand for cardiovascular services is projected to increase significantly. The American Heart Association reports that between 2017 and 2020, 127.9 million U.S. adults had some form of cardiovascular disease. Approximately 38.5% of the U.S. population and 49.5% of all U.S. adults — accounting for 12% of total U.S. health expenditures, the most of any major diagnostic group — heart disease remained the leading cause of death in the United States through 2020.
Cardiovascular illnesses have created new treatment opportunities and a significant investment opportunity. Provident Healthcare Partners estimates a U.S. market size for cardiology services in excess of $50 billion, with growth expected. For example, in the global interventional cardiology product market, a 2020 study published by Emergen Research predicts a compound annual growth rate (CAGR) of 7.6%. By contrast, a 2022 Research and Markets report expects a lower CAGR of 3.1% for cardiovascular drugs through 2026, suggesting services will be a large portion of the market’s growth in the near term. In addition to these tailwinds, investors are attracted to the industry trends of outpatient procedure migration and high-value ancillaries. These trends can reinforce one another in potential investment opportunities as further discussed below through partnerships investing in the outpatient setting.
Read on for a summary of considerations related to investing in the cardiology sector, an overview of recent transactions, and predictions as to future investment interest in this subsector.