How do rising claims drive healthcare investment strategy?

Medical costs in Singapore and the Philippines may rise more than 16% this year.

Global healthcare private equity investment reached $191b last year, the second-busiest year on record by deal count, according to a report by Bain & Co., Inc.

Deal activity included 445 announced buyouts during the year. The value of exits—the sale of healthcare investments—climbed to $156b from $54b in 2024.

More than 150 sponsor-to-sponsor deals, where a private equity firm sells a healthcare company to another, were recorded in 2025, with a combined value exceeding $120b.

Biopharma attracted the biggest share of investment at $80b, followed by provider services at $62b. Medical technology deals hit $33b, whilst healthcare information technology transactions totaled $32b, Bain said.

Many transactions involved multi-site healthcare providers—operators that run several hospitals or clinics under centralised management and financial reporting.

In Southeast Asia, healthcare private equity deals reached about $3.6b in the first half of 2025, with Singapore accounting for about half of the investment.

Exit activity in the region reached 252 deals valued at about $33.4b during the period, with trade sales accounting for 57% of exits by number and 59% by value.

Rising healthcare costs are also shaping the operating environment for providers.

Willis Towers Watson PLC in a report projected medical cost inflation of 16.9% in Singapore and 16.1% in the Philippines in 2026, amongst the highest in Asia.

Cardiovascular disease, gastrointestinal disorders, and cancer remain the main drivers of healthcare claims across the region.

Private equity investment may not directly set medical prices, but it can influence costs by shaping how healthcare providers expand and operate.

Questions to ponder:

1. How are rising medical costs shaping private equity deal structures and returns?
2. How does private equity ownership influence service quality or pricing?