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Private Equity Health Care Acquisitions – February 2021

In light of the growing investor interest in health care and the risks associated with private equity ownership of health care companies, the Private Equity Stakeholder Project will be tracking private equity-backed health care acquisitions. Below is a list of private equity health care buyouts and add-on acquisitions completed during February 2021. We will continue to track acquisitions on a monthly basis.

See January 2021 acquisitions here.

Abode Healthcare – BrightSpring Health Services/KKR

KKR-owned BrightSpring Health Services has reached a deal to acquire Abode Healthcare.

Abode Healthcare is a hospice care provider operating in Alabama, Arizona, Colorado, Iowa, Indiana, Minnesota, Nevada, Ohio, Pennsylvania and Texas. This will be the fourth time Abode has changed hands between private equity owners in four years; Abode’s current owner, private equity firm Summit Partners, bought the company from private equity firm Tailwind Capital Partners in August 2019.[i] Tailwind acquired Abode from Frazier Healthcare Partners in May 2018.[ii]

Abode’s PE owners

PE firmYear acquired
KKR (BrightSpring)February 2021
Summit PartnersAugust 2019
Tailwind Capital PartnersMay 2018
Frazier Healthcare Partners2012

BrightSpring Health Services is a home and community health services provider offering a range of services including home health, workforce services, and behavioral health. It is owned by private equity firm KKR, which acquired BrightSpring through its portfolio company PharMerica in early 2019. The combined companies operate in 47 states, Puerto Rico, and Canada, and have approximately 50,700 employees.[iii]

KKR owns at least 15 health care companies including Envision Healthcare, one of the two large medical staffing firms behind surprise medical billing in the US. Poor performance amid the COVID-19 pandemic led Envision to consider filing for bankruptcy last year.[iv]

Five Health Care Staffing Acquisitions – Cornell Capital and Trilantic North America

Cornell Capital and Trilantic North America acquired five medical staffing companies in February with plans to create new health care staffing platform. Over the span of a few weeks, the private equity firms acquired CardioSolution, Trustaff, Stella.ai, Fastaff Travel Nursing, and U.S. Nursing Corporation.[v]

The whirlwind of acquisitions represents a new foray into health care for both firms; according to their websites, neither Cornell Capital nor Trilantic owns any other health care services companies.

Fastaff and U.S. Nursing were owned by Healthcare Staffing Services, which is owned by Thomas H. Lee Partners (THL). THL will remain invested in the combined company.[vi] U.S. Nursing specializes in breaking labor strikes by unionized nurses.

Health care staffing has been a popular target for private equity investment. Scant regulation of billing practices has allowed for private equity-backed staffing companies to charge higher rates for services than hospitals, sometimes leaving patients with surprisingly high medical bills.[vii]

Top PE-owned health care staffing firms

CompanyPE Firm
Envision HealthcareKKR
TeamHealthBlackstone Group
Interim HealthcareLevine Leichtman Capital Partners
CHG HealthcareLeonard Green & Partners, Ares Management
GrapeTree Medical StaffingNew MainStream Capital
Medical SolutionsTPG Growth
Triage StaffingMcCarthy Capital
Emerald Health ServicesWebster Capital
MileStone HealthcareGrant Avenue Capital
Soliant HealthOlympus Partners, Apollo Global Management
Alteon HealthFrazier Healthcare Partners, New Mountain Capital
EA-SynergyEnhanced Healthcare Partners

Some medical staffing companies have reportedly suffered during the pandemic as emergency rooms operated at reduced capacity and elective procedures were delayed or cancelled. However, demand for nursing has surged, particularly in areas experiencing acute COVID-19 outbreaks, which has led to higher billing rates and increased revenues for nursing staffing companies.[viii]

February 2021 Private Equity HealthCare Acquisitions:

Add-on Acquisitions

Company NamePE FirmAcquiring entityType
Intermountain Anesthesia ConsultantsArchimedes Health Investors, Assured Investment ManagementNational Partners in HealthcareAnesthesia services
Sonic Boom WellnessAres Capital, OMERS Private EquityPremise HealthCorporate wellness
D&S Community ServicesAscension Ventures, Centerbridge Partners and Vistria GroupCivitas SolutionsBehavioral health & community services
WCCT GlobalAudax GroupAltasciencesDrug development
Bridges: Educational Services for Children with AutismAudax GroupProud Moments ABABehavioral health
Dr. Caren Bennett, MD (Hollywood Practice)Audax GroupGastro HealthGastroenterology
EVOnationalCentre PartnersThe IMA GroupIndependent medical exams
The Medical and Surgical Eye SiteChicago Pacific Founders, Duchossois Capital ManagementSightMDEye care
Phynd TechnologiesClearlake Capital Group, SkyKnight Capital, New Mountain CapitalSymplrHealth tech
GPM CorpGI Partners and TA Associates ManagementNetsmart TechnologiesHealth tech
Macaione And Papa DermatologyGranite Growth Health PartnersQualDerm PartnersDermatology
HS DesignGreat Point PartnersSteriPack GroupMedical devices & supplies
Performance Physical Therapy (Nevada)Gryphon Investors, Harris Preston & PartnersPhysical Rehabilitation NetworkPhysical therapy
Cognate BioservicesHG Capital, Ardan Equity PartnersIntelerad Medical SystemsHealth tech
Artemis Institute For Clinical ResearchKKRHeadlands ResearchClinical research
Abode HealthcareKKRBrightspring HealthHome health & hospice
Eton Pharmaceuticals Neurology PortfolioNovaQuest Capital ManagementAzurity PharmaceuticalsNeurology drug candidates portfolio
Docent HealthPamplona Capital ManagementGetWellNetworkHealth tech
Serene Care HospicePharos Capital GroupCharter Health Care GroupHome health
Physmed Home Health CarePharos Capital GroupCharter Health Care GroupHome health
HealthtrioProvidence Strategic Growth2ndWave SoftwareHealth tech
GenetiRateQualium Investissement and Societe Generale Capital PartenairesIMV TechnologiesBiotech
North Georgia Eye ClinicShore Capital PartnersEyeSouth PartnersEye care
Alternative Medical EnterprisesSol Global investments, Serruya Private EquityVerano HoldingsMedical cannabis
Avomeen Analytical ServicesTemasek Holdings, Bridgepoint AdvisersElement Materials TechnologyContract research organization
Optimum Performance Physical TherapyThomas H. Lee PartnersProfessional Physical TherapyPhysical therapy
The Emily ProgramVestar Capital PartnersVeritas CollaborativeEating disorder treatment

PE Buyouts

Company NamePE FirmType
MB2 DentalCharlesbank Capital PartnersDental services
CareAccess MSOCimarron Healthcare CapitalPhysician management services
trustaffCornell Capital and Trilantic North AmericaHealth care staffing
CardioSolutionCornell Capital and Trilantic North AmericaCardiology staffing
FastaffCornell Capital and Trilantic North AmericaHealth care staffing
U.S. NursingCornell Capital and Trilantic North AmericaHealth care staffing
MedRiskCVC Capital PartnersPhysical therapy
Surgical SpecialtiesGTCRMedical devices & supplies
Total Access Urgent CareICV PartnersUrgent care
DDS LabRoundTable Healthcare PartnersDental lab services
Health Payment SystemsSV Health InvestorsHealth tech – billing
Northwest Extremity SpecialistsTrinity Hunt PartnersFoot and ankle care
Los Angeles Orthopaedic Surgery SpecialistsTrinity Hunt PartnersOrthopaedic surgery

[i]https://webcache.googleusercontent.com/search?q=cache:EM4BRemWcLQJ:https://www.pehub.com/kkrs-brightspring-to-buy-abode-healthcare-in-775m-deal/+&cd=2&hl=en&ct=clnk&gl=us

[ii]https://hl.com/about-us/transactions/transaction-detail/12884903165/

[iii]https://www.businesswire.com/news/home/20190305005975/en/KKR-Completes-Acquisition-of-BrightSpring-Health-Services

[iv]https://www.wsj.com/articles/ill-timed-health-care-buyouts-bruise-kkr-and-blackstone-11590658201

[v]https://www.prnewswire.com/news-releases/cornell-capital-and-trilantic-north-america-to-acquire-trustaff-and-cardiosolution-in-combination-with-stella-to-create-tech-enabled-platform-for-healthcare-staffing-301224322.html ; https://www.prnewswire.com/news-releases/cornell-capital-and-trilantic-north-america-to-acquire-fastaff-and-us-nursing-301234805.html

[vi]https://www.prnewswire.com/news-releases/cornell-capital-and-trilantic-north-america-to-acquire-fastaff-and-us-nursing-301234805.html

[vii]https://pitchbook.com/news/articles/pe-digs-in-as-battle-to-end-surprise-medical-bills-wages-on

[viii]https://capstoneheadwaters.com/sites/default/files/Q2%202020%20Healthcare%20Staffing%20M%26A%20Coverage%20Report.7.13.20.pdf

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