Private equity firms are increasingly targeting healthcare benefits management services as employers and employees grapple with rising costs. InTandem Capital Partners, NMS Capital, and WestView Capital are among firms seizing investment opportunities in this space, drawn by demand for cost containment solutions.

Inflation, rising drug prices, and complex US healthcare regulations are creating pressure on employers to manage benefits more efficiently. The Phia Group, a healthcare cost containment provider, recently secured investment from InTandem Capital Partners with participation from HarbourVest, Partners Capital, and existing investor WestView Capital Partners. Based in Canton, Massachusetts, the company offers consulting, claims negotiations, and plan drafting services.

Meanwhile, Palladium Equity Partners is expanding in the hospice care sector through its acquisition of DME Express, a provider of durable medical equipment for US hospice providers. The Houston-based company serves nine states through 70+ warehouse locations, offering beds, respiratory equipment, and mobility devices under recurring per-patient-day contracts.