Private equity investment in healthcare real estate is picking up serious momentum in 2025—and it’s not hard to see why. With a growing push toward outpatient care, rising demand for senior living facilities, and investors hunting for long-term, stable returns, the sector is becoming a magnet for capital.
This shift isn’t just about money changing hands. It’s about how healthcare is delivered, where it happens, and who controls the spaces in which care takes place. For physicians looking to open a new practice—or investors eyeing resilient sectors—understanding this trend is more than useful. It’s essential.
Why Private Equity Is Moving In
Private equity firms are known for spotting scalable, high-growth opportunities. Healthcare real estate fits that profile more than ever. Why? Because care is moving out of hospitals and into communities.
Medical office buildings (MOBs), ambulatory surgical centers (ASCs), and senior care campuses are seeing increased patient volume and reduced overhead compared to traditional hospital systems. With an aging population and greater payer pressure to cut costs, decentralized care makes financial and operational sense.
These assets also come with predictable returns. MOBs, for instance, tend to have high occupancy rates, long lease terms, and tenants that rarely move. That level of stability is hard to find in other real estate sectors.
Major Deals Signal a Long-Term Play
Private equity’s interest in healthcare real estate isn’t just theoretical. Consider the $1.6 billion acquisition of the UK-based Assura Group by KKR and Stonepeak. That deal grabbed headlines globally—but similar moves are happening closer to home.
In the U.S., American Healthcare REIT (AHR) is actively expanding its portfolio. In early 2025, AHR announced plans to acquire two senior living communities for $70.5 million and invest an additional $136.6 million into new development projects, including independent living villas and campus expansions. In 2024, AHR completed a $258 million acquisition of the remaining 24% stake in Trilogy REIT Holdings, consolidating control over its senior health campuses.
Meanwhile, firms like Help at Home have been making strategic acquisitions in Pennsylvania, Delaware, and Georgia—building out their networks of home care and disability services. Even health systems are shifting gears. In 2024, Community Health Systems sold a hospital in Tennessee for $160 million as part of a broader divestiture strategy.
Whether through acquisition or divestment, the throughline is clear: capital is being redirected toward outpatient-focused and senior care infrastructure. It’s not just about owning buildings. It’s about controlling the future of care delivery.
Outpatient Models Are the Real Target
If you’re wondering where this investment is going, look to ASCs and MOBs.
Ambulatory surgical centers are booming. As of 2023, the U.S. had 6,308 Medicare-certified ASCs—95% of them for-profit. ASC procedure volumes per Medicare beneficiary rose 5.7% that year, and projections show a 21% increase by 2034, reaching 44 million procedures.
Part of the appeal? Cost. ASCs typically operate at 30–50% lower costs than hospital outpatient departments. Total joint replacements, spine surgeries, and other minimally invasive procedures are increasingly migrating to these centers. Add in CMS’s 2.9% payment increase for ASCs in 2025 and the addition of 20 more procedures to the ASC Covered Procedures List, and the financial logic becomes even stronger.
Medical office buildings are seeing similar traction. The top 100 U.S. markets absorbed 19 million square feet of MOB space in Q4 2024 alone—a 15% year-over-year jump. As demand outpaces supply, average rents are rising, and investors are seeing solid returns. Technology integration, such as telehealth capabilities and smart scheduling tools, adds to the appeal.
The Upside: Modernization and Access to Capital
Private equity’s involvement isn’t all about profits. For providers and patients, there are real benefits—especially when it comes to modernization.
With greater access to capital, facilities can upgrade faster. This includes everything from improved surgical equipment to patient experience enhancements, such as more accessible buildings, better waiting areas, and integrated digital systems. In many cases, new capital also means expanding into underserved markets, particularly in suburban areas where population growth is strongest.
Healthcare systems benefit, too. Many are offloading non-core assets—like real estate—to focus more on care delivery and operations. That realignment often leads to leaner, more efficient networks with broader reach.
The Caution Flags: Costs and Consolidation
Still, this wave of investment raises legitimate concerns.
The most immediate issue? Rising rents. As more private capital enters the space, lease rates are increasing—putting pressure on independent providers. For small practices or startups, this could mean tougher negotiations and thinner margins.
There’s also the risk of consolidation. PE-backed groups often acquire not just properties but also the practices within them. That can streamline operations—but it can also reduce competition and limit patient choice.
Quality of care is another concern. When financial targets take precedence, clinical outcomes can suffer. While many PE firms prioritize operational excellence, there’s always a balance to strike between efficiency and empathy.
And let’s not forget geography. Despite growth in suburban markets, only 6.2% of ASCs are located in rural areas. That gap in access needs to be addressed if outpatient models are to serve the full population3.
Strategic Implications for Owners and Investors
For healthcare practice owners, the message is clear: Know who owns your building. Lease terms, escalation clauses, and landlord priorities can all impact your bottom line. If you’re opening a new location, ask about ownership structure and future capital plans.
For investors, this is a sector worth watching—but not without strategy. Look for properties in high-growth regions with aging populations and strong payer mixes. Pay close attention to the operator mix—resilient tenants are just as important as resilient buildings.
What Comes Next?
Private equity’s push into healthcare real estate is reshaping how, where, and by whom care is delivered. It’s not just a trend—it’s a transformation.
As care continues to decentralize and new technologies make outpatient delivery more efficient, the lines between healthcare operations and real estate strategy will keep blurring.
Whether you’re opening your first practice or adding to a property portfolio, staying grounded in the realities of ownership, patient needs, and long-term cost structures will be key. Healthcare may be evolving fast—but the fundamentals of strategic investment haven’t changed.
