People will always need to rely on the healthcare industry, be that through medical prescriptions, visits to the emergency room, or stocking up on Tylenol and band-aids. The financial safety net health insurance provides also prompts people to seek medical care whenever necessary, though the importance of tending to our health will make us spend as much as we need to. This accounts for healthcare’s stability whether the economy is strong or weak. People still need to maintain their health, even when the health of the economy is in distress.
Q2 presents a challenging Macro environment, there remains a constant among the Choas. That being Healthcare Private Equity continues to be resilient in the face of rescission and as history has shown the industry will have significant returns coming out of the downturn. In the past, during the dot-com bubble and the 2008-2009 financial crisis, HCPE returns coming out of the crisis showed record-high deal closes. Although HCPE is facing challenges in our current economic climate, investors can tailor their strategies by utilizing downturn-resilient investment themes. OSI partners with HCPE to help these firms achieve success during turbulent times by placing excellent talent to deliver growth and security.
2022 was a tough year for healthcare deals, especially within Pharmaceuticals, Life sciences, and Healthcare Services. Cash was held significantly on the balance sheet in both Corporate and Private Equity to wait for lower interest rates. This leads us to believe we can expect healthcare to invest in deals to achieve the growth they look for. Although the economic climate continues to produce uncertainty and unease for investors, healthcare businesses will need to make acquisitions to achieve their mandated trajectory. M&A has proven to be resistant to impending downturns as this is the time when some of the best deals are made. When new deals are coming, human capital is needed to drive successful execution and implementation of growth strategies. Historically, OSI has navigated through turmoil with its partners in planning corporate expansions within Mergers & Acquisitions.
Big tech has seen a whirlwind in the hiring market, notably the mass layoffs during 2023 Q1. That said, Healthcare Technology companies still see rapid opportunities for growth and advancement in Generative AI (Artificial Intelligence). Chat GPT has been all the talk of the internet as of late from students using Chat GPT to author their papers and News Giants using it to author stories on the web. Although Chat GPT has been used unethically, it still opens doors for real case uses. Healthcare Tech has been taking the market by storm with Generative AI with companies offering new software as a service that can record your patient’s notes and even identify patients’ conditions. Healthcare systems are in a crisis, and it is the perfect time for AI to help increase productivity and responses, especially in circumstances of staffing shortages. OSI partners in providing leading technologists for insight and human capital in efforts to support industry needs.
Aware of the impact, breadth, and demand for healthcare services even during a recession, OSI has partnered with public and private companies in this sector. Our goal has been to place individuals with excellent managerial skills, established and rising industry leaders who know the medical space like the back of their hand and can identify what “next move” will yield growth. Read about OSI’s role in a pharmaceutical company’s successful acquisition of $15 billion dollar conglomerate by placing an outstanding C-level executive.