The U.S. macro economy is facing tumultuous times, resulting in an unprecedented impact on M&A markets. Many sectors face financial uncertainty amid tariffs that create volatility across a wide range of vital M&A factors, such as target valuations, working capital metrics, and purchase price adjustments.
Healthcare investors already know their sector remains resilient. The challenge now for healthcare executives is deciding how to traverse a lending environment where traditional banks are overly cautious, and deal timelines are tighter than ever. Keeping your acquisition strategy moving requires a faster, broader, and more targeted means for accessing credit.
Despite economic uncertainties, hospital acquisitions of physician practices continue, with just 42.2% of physicians remaining in private practice in 2024 compared to 60% in 2012. A 2024 U.S. Government Accountability Office report shows that at least 47% of physicians were consolidated by hospital systems, while PE ownership represents a “small but growing share” of about 6.5% as of 2024. The sector remains an area of interest for investors.
With a positive outlook for healthcare heading into 2026, now is the time for smart investors to acquire physician practices. However, after a perfect storm of weak profits resulting from cost increases and weak reimbursement increases from 2023 through 2025, some traditional lenders may be hesitant to take the risk.
As such, firms or companies interested in acquiring physician practices must look beyond traditional lenders if they hope to expand and take advantage of the improving conditions in 2026.
Don’t just settle for the same lenders as before, connect with new ones
The difficult cycle from 2023 to 2025 that was marked by rising costs and weak reimbursement is finally easing. Yet, many traditional lenders are not ready to restart lending to physician practices. Even as we see improving profits and opportunities, traditional lenders and their investment committees remain on the sidelines waiting for more proof.
This lingering hesitation from traditional lenders has become a major barrier for healthcare executives looking to grow through acquisitions of physician practices. Overcoming this hurdle requires a more precise strategy for finding lenders that allows you to approach both banks and private credit.
You don’t want to simply return to a lender who isn’t comfortable with you, hasn’t treated you well, or is only offering very expensive loans. This requires you to start thinking about how you can improve your debt terms through a different lender. At CAPX, we can help you achieve this.
Approaching a multiple of lenders in 1/4th the time with CAPX
If you are a CFO of a middle-market company, you likely only communicate with four or five traditional banks, if that. CAPX gives you the flexibility to approach a multiple of lenders in a quarter of the time it would have taken you to reach out to just a few, helping you secure capital faster.
Approaching a broader group of lenders through CAPX results in both better economics and loan terms by giving you freedom of choice. You get cheaper debt to use for acquisitions, allowing you to speed up growth and maintain a sharp competitive edge within your industry.
Real-world example: How CAPX is helping a PPM firm find $400 million+ in capital
CAPX is helping a regional PPM firm refinance its debt with an entirely new group of lenders.
Our solution introduced the company with financing partners they could not have found on their own. We also helped redesign their debt structure, which will save them millions in interest. At the same time, the new structure gives them steady liquidity for working capital and acquisition financing, setting them up for strong, continued growth.
When you settle for letting lenders find you, you get only a narrow view of what’s possible. Many companies only hear from one or two lenders, which can limit their options and lead to financing terms that don’t fully support their goals.
With CAPX, you gain access to the full lending market and the ability to approach multiple targeted lenders at once. This freedom of choice allows you to compare structures, negotiate stronger terms, and select the partner that best suits your growth strategy. Instead of taking what comes to you, CAPX lets you choose the best path forward with confidence.
Broadening your lender market with CAPX to speed up acquisitions
CAPX can help firms looking to complete $400 million+ transactions, but our platform is also designed to provide crucial assistance to smaller companies looking to source debt capital as low as $10 million.
If you currently rely mainly on regional banks, CAPX allows you to vastly broaden your horizons and approach 150 lenders through our platform, including both traditional banks and private credit. CAPX provides a much larger lender market for you to explore, generating competition and better returns.
As a physician practice management company, chances are, all you know is banks. Yet, there’s a whole wide world of alternatives out there just waiting, if only you know where to look. When your aim is to obtain a meaningful amount of capital to make acquisitions, banks are not always the parties to turn to. What you may need is private credit, and CAPX is just the platform to help you find them.
Connect with the right lenders for your needs today.
