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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 Partners August 2019
Tailwind Capital Partners May 2018
Frazier Healthcare Partners 2012

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 Healthcare KKR
TeamHealth Blackstone Group
Interim Healthcare Levine Leichtman Capital Partners
CHG Healthcare Leonard Green & Partners, Ares Management
GrapeTree Medical Staffing New MainStream Capital
Medical Solutions TPG Growth
Triage Staffing McCarthy Capital
Emerald Health Services Webster Capital
MileStone Healthcare Grant Avenue Capital
Soliant Health Olympus Partners, Apollo Global Management
Alteon Health Frazier Healthcare Partners, New Mountain Capital
EA-Synergy Enhanced 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 Consultants Archimedes Health Investors, Assured Investment Management National Partners in Healthcare Anesthesia services
Sonic Boom Wellness Ares Capital, OMERS Private Equity Premise Health Corporate wellness
D&S Community Services Ascension Ventures, Centerbridge Partners and Vistria Group Civitas Solutions Behavioral health & community services
WCCT Global Audax Group Altasciences Drug development
Bridges: Educational Services for Children with Autism Audax Group Proud Moments ABA Behavioral health
Dr. Caren Bennett, MD (Hollywood Practice) Audax Group Gastro Health Gastroenterology
EVOnational Centre Partners The IMA Group Independent medical exams
The Medical and Surgical Eye Site Chicago Pacific Founders, Duchossois Capital Management SightMD Eye care
Phynd Technologies Clearlake Capital Group, SkyKnight Capital, New Mountain Capital Symplr Health tech
GPM Corp GI Partners and TA Associates Management Netsmart Technologies Health tech
Macaione And Papa Dermatology Granite Growth Health Partners QualDerm Partners Dermatology
HS Design Great Point Partners SteriPack Group Medical devices & supplies
Performance Physical Therapy (Nevada) Gryphon Investors, Harris Preston & Partners Physical Rehabilitation Network Physical therapy
Cognate Bioservices HG Capital, Ardan Equity Partners Intelerad Medical Systems Health tech
Artemis Institute For Clinical Research KKR Headlands Research Clinical research
Abode Healthcare KKR Brightspring Health Home health & hospice
Eton Pharmaceuticals Neurology Portfolio NovaQuest Capital Management Azurity Pharmaceuticals Neurology drug candidates portfolio
Docent Health Pamplona Capital Management GetWellNetwork Health tech
Serene Care Hospice Pharos Capital Group Charter Health Care Group Home health
Physmed Home Health Care Pharos Capital Group Charter Health Care Group Home health
Healthtrio Providence Strategic Growth 2ndWave Software Health tech
GenetiRate Qualium Investissement and Societe Generale Capital Partenaires IMV Technologies Biotech
North Georgia Eye Clinic Shore Capital Partners EyeSouth Partners Eye care
Alternative Medical Enterprises Sol Global investments, Serruya Private Equity Verano Holdings Medical cannabis
Avomeen Analytical Services Temasek Holdings, Bridgepoint Advisers Element Materials Technology Contract research organization
Optimum Performance Physical Therapy Thomas H. Lee Partners Professional Physical Therapy Physical therapy
The Emily Program Vestar Capital Partners Veritas Collaborative Eating disorder treatment

PE Buyouts

Company NamePE FirmType
MB2 Dental Charlesbank Capital Partners Dental services
CareAccess MSO Cimarron Healthcare Capital Physician management services
trustaff Cornell Capital and Trilantic North America Health care staffing
CardioSolution Cornell Capital and Trilantic North America Cardiology staffing
Fastaff Cornell Capital and Trilantic North America Health care staffing
U.S. Nursing Cornell Capital and Trilantic North America Health care staffing
MedRisk CVC Capital Partners Physical therapy
Surgical Specialties GTCR Medical devices & supplies
Total Access Urgent Care ICV Partners Urgent care
DDS Lab RoundTable Healthcare Partners Dental lab services
Health Payment Systems SV Health Investors Health tech – billing
Northwest Extremity Specialists Trinity Hunt Partners Foot and ankle care
Los Angeles Orthopaedic Surgery Specialists Trinity Hunt Partners Orthopaedic 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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