In 2023, private equity dealmaking in U.S. healthcare declined for the second consecutive year, influenced by macroeconomic challenges like high interest rates and labor shortages. Despite this, 1135 unique deals were identified, with outpatient care, dental care, health IT, and medtech being the busiest subsectors. Private equity's growing presence raises concerns over cost-cutting and debt service obligations potentially impacting patient care and worker compensation. Regulators and lawmakers are urged to scrutinize private equity acquisitions more closely to ensure affordable and quality healthcare.