News last week that Walmart was hooking up with Humana sent waves through the healthcare and retail world. Disruption has taken its toll on both sectors. Top players are actively looking across industry lines for partners to help them survive and thrive.

Figuring out how to leverage expertise to consolidate inefficient businesses is, of course, what private equity does best. The question is, which businesses?

With the advent of ACA eight years ago, it became clear that high-cost service providers would be under immense pressure relative to lower-cost centers. As such, more attention began to be paid to areas ripe for consolidation and growth.

In an upcoming interview with The Lead Left, Revelstoke managing director, Andrew Welch, reports his firm favors “sectors that have a demonstrable value proposition to patients, payers and providers with stable utilization and reimbursement trends.”

He continues. “We have a lot of experience with outsourced services and multi-site, consumer-facing providers. Some specific healthcare sectors we are currently targeting include practice management (specifically ophthalmology and dermatology), behavioral health (for example, substance abuse and eating disorder related businesses), veterinary clinics, women’s health and healthcare IT.”