2026 Pediatrics M&A Market Update: Why Pediatric Groups Are Exploring the Market

Updated: September 2026

Published by Physician Growth Partners

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Is Now the Right Time to Sell Your Pediatrics Practice?

The primary care pediatrics sector has undergone a notable transformation in the eyes of institutional investors over the last several years, and the number of active acquirors has grown faster than most other physician practice specialties. If you run an independent primary care pediatrics practice, the next 12 to 18 months represents a favorable window to explore a sale transaction. When PGP advised Pediatric Affiliates in forming US Pediatric Partners with Webster Equity Partners in early 2023, private equity investment in pediatrics was still emerging with only two other traditional PE-backed platforms that were active in the space (Pediatric Associates and Aspen Pediatrics). Aspen has since been acquired by US Pediatric Partners in December 2025. As of 2026, there are more than seven dedicated private equity consolidators that are acquiring independent pediatrics practices, supplemented by diversified primary care platforms, regional health systems, and a growing cohort of concierge medicine buyers and women’s health buyers.

The investment thesis for buyers is grounded in durable fundamentals as pediatrics practices offer recurring, long-term patient relationships from birth through adolescence. Services typically include well visits, sick visits, immunizations, and the opportunity to capture behavioral health, dermatology, allergy, and other specialty referrals in-house. Factors such as low patient acquisition costs, deeply rooted community trust, and attachment to pediatricians within families create long-term, recurring revenue streams. Additionally, the shift toward value-based care models rewards practices that have the scale and care coordination to effectively reduce the cost of patient care through preventative care and accessible visits.

Independent pediatrics practices are increasingly exploring private equity partnerships as they navigate the growing complexity and difficulties of operating independent practices, including Medicaid reimbursement not keeping up with operating costs, increased competition to hire providers from health systems and larger players, and the growing administrative burden on practice owners. As consolidation in the pediatrics practice sector continues, many physicians view potential partnerships as an opportunity to get rewarded for what they have built and take some risk off the table, while benefitting from the scale, infrastructure, and strategic support provided by a partner. Pediatrics practices that have multiple locations, large patient panels, established payor contracts with a value-based incentive, and standardized operating procedures are in short supply and have a good opportunity to evaluate liquidity and explore partnership options to maximize value in the current environment.

This report draws on current market insights, recent transactions in the sector, and PGP’s direct experience in the pediatrics M&A space to help you understand the potential value of your practice and the timing considerations to pursue a transaction.

The Pediatrics Market in 2026–2027: Why It Matters Now

The U.S. primary care pediatrics sector represents a large and important segment of the healthcare market. The global pediatric healthcare market was valued at ~$16 billion in 2025, with the U.S. representing approximately one-third of the share, and is projected to grow at an ~4% compound annual growth rate over the next several years driven by population growth, Medicaid expansion, and rising demand for developmental and behavioral health services.¹ Within the broader sector, the pediatrics practice market remains highly fragmented, with most practices operating as small, independent groups of fewer than ten physicians.

Access challenges in pediatrics are significant and potentially worsening over the next decade. A peer-reviewed workforce analysis published in 2026 projects that the national supply of general pediatricians will decline from approximately ~62k FTEs in 2025 to 55k FTEs by 2037, even as patient demand is projected to grow, creating a widening gap.² Rural and suburban communities are disproportionately affected, with the same study projecting that pediatrician adequacy in non-metropolitan areas will fall to just over 50% by 2037.² This structural imbalance of supply and demand creates a compelling growth thesis for investors who can build the infrastructure needed to recruit, retain, and support pediatricians at scale.

The shift toward value-based care is also reshaping the economics of pediatrics practices. Payors are increasingly channeling managed care dollars toward accountable care organizations and attributed patient panels, which reward larger, better-coordinated groups and put smaller independent practices at a disadvantage. Private equity and strategic buyers are well positioned to help practices navigate this transition and highlight the potential benefits of finding the right partner.

What Is My Pediatrics Practice Worth? Understanding Pediatrics Valuations

Valuations in primary care pediatrics are driven by a combination of factors that go beyond just a practice’s revenue profile. Patient panel size, payor mix and the strength of rates (if a buyer is entering a new geography), provider age / tenure / productivity, geographic density, patient pull from surrounding areas, walk-in / same-day access, the presence of in-house specialty providers and ancillary services, value-based care or care coordination contracts, and the depth of the practice’s infrastructure all play a role in a valuation analysis.

Based on PGP’s direct experience advising pediatric practices, well-scaled groups with diversified revenue are achieving EBITDA multiples in the high single digits (and beyond), while smaller add-on targets generally trade at mid-single digit multiples.

Recent transactions confirm that buyer appetite for quality pediatric assets remains strong. Aforementioned US Pediatric Partners, formed in 2023, has since expanded to more than 75 locations across 5 states.³ Separately, Zarminali Pediatrics, founded in late 2024 with $40 million in seed funding from General Catalyst and later raised $110 million Series A in early 2026, has rapidly grown to 35+ locations in 10 states, reflecting the institutional conviction and capital allocated to an aggressive buy-and-build strategy in the sector.

Key Valuation Drivers by Service Line

Who Is Buying Pediatrics Practices Right Now?

The pediatrics buyer universe consists of several distinct acquirers:

Regional Health Systems: Local health systems and children’s hospitals are looking to protect referral networks and expand employed physician relationships. Many health systems are prioritizing pediatric recruitment given the current shortage, and acquisitions of well-established community practices offer a faster path to increased market presence and developing long-term relationships.

PE-Backed Pediatric Consolidators: As of 2026, there are more than seven PE- and VC-backed consolidators actively operating in the primary care pediatrics space. The most established platforms include US Pediatric Partners (Webster Equity Partners) and Pediatric Associates (Summit Partners). A newer cohort that has entered since 2024 includes Playground Pediatrics (Norwest Venture Partners, Healthcare Foundry), Zarminali Pediatrics (General Catalyst, Healthier Capital), Pediatrica Health Group (M33 Growth), Southern Pediatrics (Teamworthy Ventures), Bluebird Kids Health (F-Prime, .406 Ventures, Juxtapose). Each group is at a different stage of platform development, and the range of buyers creates competition for quality independent practices across most geographies.

Diversified Primary Care and Pediatrics Platforms: Primary care organizations that include pediatrics alongside adult medicine, including Nuvia Medical Group (Pine Tree Equity), MyTown Health Partners (Webster Equity Partners), and Allied Physicians Group (Ascend Capital Partners), among others, view pediatrics as a strategic anchor for lifetime patient relationships and family-level care coordination.

OB/GYN and Pediatrics Crossover: A growing category of PE-backed buyers is pursuing a combined OB/GYN and pediatrics strategy built around the idea of covering the full continuum of care for the mother and child. These platforms are acquiring both women’s health practices and primary care pediatrics groups in the same markets, with the goal of creating a coordinated care model that follows the patient from prenatal through adolescence. Axia Women’s Health (Partners Group) and Unified Women’s Healthcare (Altas Partners, Ares Management) are two prominent first movers for this strategy. These platforms are recognizing that the OB/GYN to pediatrician handoff is one of the highest-value referral relationships in primary care. Pediatrix Medical Group (publicly traded) is another major player providing specialized care for women, babies, and children.

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Select Recent Pediatrics Transactions: 2025–2026

PGP is an active and trusted M&A advisor in the primary care pediatrics sector and has represented multiple independent pediatrics practices in transactions that explored PE- /VC-backed platforms, as well as other alternatives mentioned above. PGP also maintains active dialogue with pediatrics practices, relevant buyers, and other industry participants to stay up to date with the latest trends.

A few recent notable PGP pediatrics transactions include:

• PGP advised Pediatric Affiliates in its partnership with Webster Equity Partners, forming US Pediatric Partners. Pediatric Affiliates is one of New Jersey’s largest pediatric groups, operating across six locations with a strong focus on underserved patient populations. The transaction was one of the first private equity investments in the pediatric space, and they have since expanded to more than 75 locations across New Jersey, Maryland, North Carolina, South Carolina, and Florida.⁵
• PGP advised PAK Pediatrics in its partnership with Playground Pediatrics, a pediatrics MSO backed by Norwest Venture Partners and Healthcare Foundry. PAK had grown into the leading pediatric practice in Northeast Pennsylvania, operating four locations and caring for more than 20,000 patients. PAK was seeking a partner aligned with its patient-centered mission who could support the next chapter of growth without disrupting the culture the team had built. Playground Pediatrics demonstrated that alignment clearly, and the transaction closed in October 2025.⁶

These transactions highlight PGP’s active presence in the pediatrics sector, having generated strong outcomes for clients, and validating the broader market’s ongoing acquisition appetite for quality independent practices.

Why 2026-2027 Is an Optimal Window for Pediatrics Practice Owners to Transact

Based on PGP’s firsthand experience, we believe now is a great time to evaluate a potential transaction given the following factors:

• Sizable Dry Powder Among Buyers: Private equity investors focused on healthcare services and primary care entered 2026 with significant uninvested capital. The growth in PE- and VC-backed pediatrics platforms sets up for a more active M&A environment. Competition to deploy capital into quality assets is real and translates into a favorable environment for pediatrics practices to explore a transaction.
• Strong Valuation Environment: Buyer competition for quality pediatric assets is increasing as well-run, multi-site practices with clean financials and diversified revenue are commanding strong EBITDA multiples. Independent practices that have been building toward a transaction over the past several years are finding a receptive market.
• Increasing State-Level Regulatory Pressure: Several states have moved to impose additional oversight and reporting requirements on private equity-backed healthcare transactions. Practices in states that have not yet implemented such restrictions may benefit from transacting before additional rules take effect. PGP expects further state-level action over the next 12 to 18 months.
• Recruitment Competition from Health Systems and Larger Groups: Children’s hospitals and regional health systems, as well as larger groups, are actively targeting independent pediatricians with competitive compensation packages, signing bonuses, and loan forgiveness programs. Independent groups that cannot match these offers are finding it harder to recruit new physicians, which creates longer-term risk if the practice does not build scale.
• Ongoing Reimbursement Pressures: Medicaid rates, which represent a large share of revenue for many pediatrics practices, have not kept pace with practice operating costs in most states, and the spread continues to widen for independent groups without scale. This long-running trend continues to exacerbate the pain that independent practice owners are facing.
• Generational Transition: A meaningful portion of independent pediatrics practice owners are approaching traditional retirement age. Many younger partner physicians are interested in partnership structures that give them access to a broader platform while reducing the administrative burden that comes with independent practice ownership. The alignment between seller and next-generation physician interests is creating favorable conditions for transaction timing.

Impact of Private Equity on Clinical Operations for Pediatrics Practices

Primary care pediatrics is a structurally different model than many of the surgically driven specialties (i.e., orthopedics, ophthalmology, gastroenterology, etc.) where private equity has historically focused. Revenue is primarily driven by volume with wellness visits, sick visits, and immunizations rather than ancillary services or high-value procedures.

Additionally, value-based care has, in many respects, aligned the financial interests of the platform with the clinical values of the physician group. Platforms pursuing risk-based contracts and attributed panel arrangements are incentivized to maintain broad access, strong preventive care performance, and high visit volumes. Quality payment programs, including MIPS and Advanced APM participation, reward coordinated, outcomes-focused care. For practices already oriented toward VBC, a partnership with the right platform can accelerate those efforts rather than compromise them. Certain platforms, like MyTown Health Partners (owned by Webster Equity Partners) have also taken an angle to increase access in rural communities and a rural health clinic (“RHC”) certification carries enhanced Medicare and Medicaid reimbursement rates for qualifying practices in underserved areas.

Recent media coverage of private equity in healthcare has shaped public perception in ways that do not always reflect the reality of well-structured partnerships. The truth is that private equity partnerships are not all the same, and practice owners should carefully consider various factors as part of a potential partnership.

When evaluating a prospective partner, the specific structural questions matter more than general assurances. Practice owners and physicians must carefully assess potential partners and fully understand the management services agreement (MSA) structure, post-transaction physician governance, operational focus and value-add, and track record with existing physician partners. Conducting your own diligence on a prospective partner is not a formality. It is one of the most important steps in a transaction, and PGP structures every process to give physician clients the time and information to do it thoroughly.

PGP Perspective

Primary care pediatrics has reached a meaningful inflection point as the sector has transformed into a competitive, well-capitalized market with many active, PE- and VC-backed consolidators, supplemented by buyers with additional angles, acquiring independent pediatrics practices. The growth of the buyer landscape creates a favorable environment for independent practices that have not yet tested the market. Platforms at various stages of development are actively deploying capital to build geographic density, and the competition among them translates directly into higher valuations, more flexible deal structures, and a wider range of partnership options for sellers.

For independent pediatric practices, the current window of opportunity remains open, but it will not remain so indefinitely. The most valuable step a practice can take today is to become informed about what a potential transaction could look like and whether it aligns with its long-term goals. As larger platforms mature and build out their target geographies, acquisition urgency is likely to decline, along with the premium valuations that often accompany earlier-stage consolidation.

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Physician Growth Partners · This content is provided for informational purposes only and does not constitute legal, financial, or investment advice. All transaction data sourced as cited. © 2026 Physician Growth Advisors, LLC. All rights reserved.