4.10.12.3Vertical

Multispecialty Group Practices

Large physician groups offering multiple specialty services.

Market snapshot

These figures describe Multispecialty & Primary Care Groups (4.10.12), the segment that Multispecialty Group Practices sits within. They are not figures for Multispecialty Group Practices on its own.

Market size
~$630B
Growth
~6.0%CAGR (2017–22, nominal)
Companies
~163,499 firms
Firms by employee count

89.8% of firms have fewer than 20 employees: 146,826 micro-businesses, below most mandates.

The investable universe16,673 firms with 20+ employees
20–99
13,17979%
100–499
2,31314%
500+
1,1817%

The physician-office core of healthcare (~163,500 firms, ~$630B, growing ~6%/yr) captured under the offices-of-physicians code, which the federal data does not split by specialty. It is 90% small practices, which is exactly why PE platforms and health systems have rolled up specialty after specialty; primary and multispecialty groups are the largest share.

NAICS 621111. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Fee-for-service plus value-based and capitated arrangements

Key economics

Revenue per firm
$4,233,407
Revenue per employee
$229,440
Employees per firm
17.5
Recurring revenue
Moderate–High

recurring patient panels

EBITDA margin
10–20%; risk-bearing models vary
Capex intensity
Low

Characteristics

  • Balanced cost base: payroll is 41% of revenue, leaving room to scale margin without cutting staff
  • Owner-operator dominated: 72% of businesses have no employees but take only 4% of revenue
  • Deep strategic-buyer pool: 1,181 firms exceed 500 employees, so a scaled asset has trade buyers
  • The front door of the healthcare system.
  • Intense payer/retailer battle to own primary care.
  • Value-based and risk-bearing models reshaping economics.

NAICS 621111. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census; U.S. Census Bureau, 2022 Nonemployer Statistics.

M&A deal context

Deal activityHigh

Who’s acquiring

  • Payers (Optum, CVS) & retailers
  • Value-based-care platforms (agilon, Privia)
  • PE-backed medical groups

What’s driving deals

  • Payer and retailer acquisition of primary care.
  • Value-based-care risk-bearing economics.
  • Consolidation of independent practices.

Find Multispecialty Group Practices acquisition targets

Search Acquisera’s index for companies classified under Multispecialty Group Practices (4.10.12.3) and build a targeted deal pipeline.

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