With only 8% of ophthalmologists affiliated with private equity-backed platforms as of 2022, the vision care sector represents one of healthcare’s final frontiers for consolidation—and sophisticated investors like Reeve Waud are positioning to capture this massive opportunity through strategic platforms like Unifeye Vision Partners.
The Consolidation Runway Ahead
The numbers tell a compelling story about ophthalmology’s fragmentation. From 2015 to 2022, practice count declined 18% from 7,149 to 5,890 locations, yet 75% of remaining practices still employ only one or two physicians. This fragmentation creates abundant acquisition opportunities for well-capitalized platforms.
More than 25 private equity firms now actively pursue ophthalmology investments, yet the sector remains remarkably unconsolidated compared to dermatology or gastroenterology. Waud Capital Partners’ early investment in Unifeye Vision Partners positions the firm ahead of this consolidation wave, building scale before competition intensifies.
The recent Brooks Eye Associates partnership demonstrates how Reeve Waud identifies high-quality practices before broad market recognition drives up valuations. Dr. Dain Brooks’ 4,500 annual surgeries and established Plano market presence represent exactly the type of productive assets that become scarcer as consolidation accelerates.
Demographic Tailwinds Drive Market Fundamentals
Ophthalmology benefits from unstoppable demographic trends that ensure growing demand regardless of economic conditions. The U.S. population over age 65—ophthalmology’s core patient demographic—will reach 95 million by 2060, nearly doubling current levels.
Cataract procedures alone are expected to increase dramatically as baby boomers age. While Medicare reimbursement rates face continued pressure, procedure volumes more than offset rate declines for efficient operators. This dynamic favors consolidated platforms like UVP that can optimize workflows and reduce per-procedure costs.
Mike Lehman of Waud Capital Partners noted that the Brooks partnership provides UVP with “additional resources to continue its growth trajectory in existing and new geographies while emphasizing ambulatory surgical operations and high-quality patient care.”
Technology Creates Scale Imperatives
Modern ophthalmology requires substantial capital investments in advanced surgical equipment, electronic medical records, and diagnostic technology. Solo practitioners struggle to justify $500,000+ equipment purchases for limited patient volumes, while platforms can deploy technology across multiple locations for optimal return on investment.
Reeve Waud’s healthcare investment philosophy has consistently emphasized operational leverage through technology adoption. Platforms like UVP can standardize best practices, share expensive equipment across locations, and negotiate better terms with technology vendors—advantages unavailable to independent practices.
Strategic Positioning for Platform Exits
UVP’s current scale—64 clinic locations and 19 ambulatory surgery centers—provides critical mass that positions the platform attractively for eventual exit opportunities. Whether through IPO, strategic sale, or private equity recapitalization, buyers prefer platforms with geographic density and operational sophistication.
Waud Capital Partners’ track record building healthcare platforms, from Acadia Healthcare’s successful IPO to GI Alliance’s $2.2 billion recapitalization, demonstrates the firm’s ability to create and capture value through healthcare consolidation cycles.
The ophthalmology consolidation opportunity remains compelling despite increasing competition. Success will favor platforms that, like Reeve Waud’s Unifeye Vision Partners, combine clinical excellence with operational efficiency while maintaining physician satisfaction. As independent practices face mounting pressures, the consolidation runway extends far beyond current market penetration levels. Related: Waud Capital Partners Names New Partners and Principals
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