At the Healthcare Private Equity Europe (HPE) 2025 conference held in London, industry leaders gathered to discuss the future of healthcare investments amid mounting pressures from population growth, ageing demographics, and rising co-morbidities. Organized by McDermott Will & Emery, the event brought together hundreds of healthcare professionals, investors, and changemakers who identified key growth areas for 2026. A primary focus was the rapid shift towards outpatient care, mirroring trends seen in the United States where hospital bed usage has halved over the past 50 years despite population increases. In Europe, particularly France, outpatient surgical procedures have surged from 47% of all surgeries in 2013 to 64% in 2024, with procedures like cataract surgery nearly entirely moving out of hospital settings.

This transition offers substantial opportunities for private equity firms seeking operational efficiencies, policy support, and technological advancements. Experts noted that 10% of current hospital operations could shift to outpatient settings without compromising clinical outcomes, appealing to patients eager to avoid inpatient stays. Holger Ebersberger, partner at McDermott Will & Emery, emphasized private equity's role in delivering affordable and efficient care: "The data shows that private equity has become a significant player in outpatient care both in the US and in Europe. There are a lot of opportunities in Europe now for private equity to step in." Market tailwinds, including reimbursement policies favoring ambulatory settings, further bolster investor confidence.

Addressing skilled labour shortages emerged as another critical challenge, with 21 of 28 European countries reporting doctor shortages and 16 facing nurse deficits. The European Labor Authority estimates a shortfall of 1.2 million doctors, nurses, and midwives across the EU. Private equity is targeting solutions leveraging emerging technologies like artificial intelligence (AI) and robotics to enhance efficiency. AI applications are already proving value in diagnostics, medical imaging analysis, bed optimization, and fall prevention. Conference panellists highlighted investments in personalized medicine powered by AI and robotics as high-potential areas for 2026.

A poll of HPE Europe attendees revealed regulatory and reimbursement barriers as the top investment challenge (72%), with staffing second (18%). Despite slowed dealmaking post-COVID due to high valuations, regulatory scrutiny, and bid-ask spreads, optimism is returning with declining interest rates and demand for affordable outpatient care. Attractive niches include mental health, women’s health, AI-enabled care, home care (49% of respondents), and specialist clinics in ophthalmology, fertility, orthopaedics, and dermatology (29%). Expectations are high for increased activity in 2026, including portfolio carve-outs from large listed firms, sponsor exits in small to mid-cap spaces, cross-border expansions, and focus on domestic businesses.

Jason Zemmel, another partner at McDermott Will & Emery, noted: "There are now interesting investment prospects coming up in outpatient care and healthcare services, with a backlog of exits waiting to transact. Investors see ways to do things better and a swathe of value-creation opportunities driven by technology." This conference underscores a pivotal moment for Healthcare Management in Europe, where strategic investments can alleviate system strains while fostering innovation in facilities management and healthcare information technology.

The implications for hospital administrators and procurement professionals are profound. Outpatient optimization promises cost savings and improved patient throughput, aligning with broader digital transformation goals. Clinical leadership must prepare for AI integration in critical areas like diagnostics and imaging, while facility managers eye infrastructure upgrades for ambulatory centers. Medical technology vendors stand to benefit from partnerships in AI and robotics, particularly in categories like Patient Monitoring and Surgical Equipment. Regulatory changes around reimbursements will shape procurement strategies, emphasizing the need for agile supply chains.

Overall, the HPE Europe insights signal a bullish outlook for 2026, positioning Europe as a hotspot for healthcare services investments that prioritize efficiency, technology, and patient-centered care models.