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Provident Healthcare Partners Provident Healthcare Partners

Q4 2023 Laboratory & Diagnostics Update

Provident Healthcare Partners
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Q4 2023 Laboratory & Diagnostics Update

The laboratory and diagnostics space rounded out the year with its quietest quarter of 2023, with only three deal closing announcements. Primary drivers for the sluggish deal flow have been continued recruiting difficulty for lab technicians and increased reimbursement pressure from commercial and government payors, compressing margins.

As traditional laboratory deal flow slows down, outsourced lab service providers continue to garner significant interest from investors as an alternative to direct investment into the lab space. Outsourced lab services providers are insulated from the micro-level factors that have been bogging down the industry’s growth. An example of this is Sonic’s acquisition of PathWatch, marking the emergence of laboratory and pathology companies venturing into the digital pathology space. Industry experts expect the sector to continue its adoption of innovative and cost-effective alternatives to traditional testing modalities.

To print and download the full Laboratory & Diagnostics Update report, please click below…

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