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Private Equity Health Care Acquisitions – August 2022

September 8, 2022

In light of the growing investor interest in healthcare and the risks associated with private equity ownership of healthcare companies, the Private Equity Stakeholder Project will be tracking private equity-backed healthcare acquisitions. Below is a list of private equity healthcare buyouts and add-on acquisitions completed or announced during August 2022. We will continue to track acquisitions on a monthly basis.

See July 2022 acquisitions here.

Apollo Global Management Acquires Psychiatric Hospitals and Gastroenterology Chain

This month, private equity firm Apollo Global Management made two major acquisitions: Springstone, a chain of behavioral health hospitals, and GI Alliance, the largest gastroenterology practice in the US.

Apollo-Owned LifePoint Health Acquiring Behavioral Health Chain Springstone

Apollo-owned rural hospital system LifePoint Health is acquiring psychiatric hospital chain Springstone.[1] The acquisition continues Apollo’s streak in buying up and combining large providers into the LifePoint platform.

Springstone operates 18 behavioral health hospitals and 35 outpatient locations in nine states: Arizona, Colorado, Indiana, Kansas, North Carolina, Ohio, Oklahoma, Texas, and Washington.[2]

Springstone is currently owned by healthcare REIT Medical Properties Trust (MPT), which will continue to own and lease the real estate to the hospitals.[3] MPT had acquired Springstone from private equity firm Welsh, Carson, Anderson, & Stowe (WCAS) in June 2021 and separated out the real estate from the operating business.[4] WCAS created Springstone in 2010 as a single newly constructed psychiatric hospital and has constructed each new facility since.[5]

This is not the first time LifePoint and MPT have partnered; in November 2019, LifePoint executed a sale-leaseback transaction with MPT, selling 10 acute care hospitals to the REIT for $700 million and leasing them back.[6]

The acquisition is a significant expansion of LifePoint’s behavioral health services, which currently includes 30 behavioral health units in various community hospitals and three inpatient behavioral health facilities in Texas and Washington.[7]

LifePoint has grown substantially since Apollo acquired it in 2018 and merged it with another hospital chain, RegionalCare Hospital Partners.[8] Then in December 2021, Apollo acquired acute care hospital chain Kindred Healthcare and merged it with LifePoint. As part of the transaction, LifePoint shifted some of the acquired facilities and some its existing hospitals into a new company called ScionHealth, which is also controlled by Apollo.[9]

See PESP’s previous research on LifePoint:

“Independent hospital systems have greater difficulty weathering prolonged periods of financial stress,’’ Apollo wrote to its investors in May 2020. “A consolidation strategy will provide meaningful upside for Apollo funds’ investment.’’[10]

With LifePoint and Scion together, Apollo owns over 140 hospitals and 170 outpatient and post-acute facilities. The acquisition of Springstone adds another 18 behavioral health hospitals and 35 outpatient locations.[11]

LifePoint’s building out its behavioral health offerings echoes a broader trend of private equity increasingly investing in the sector. PESP has found that private equity has a troubling track record in investing in behavioral health where cost-cutting tactics at such as cutting staff, relying on unlicensed staff, and failing to maintain facilities, have been shown to create harmful outcomes for patients.[12]

See our reports on private equity in behavioral health:


Apollo Acquiring Major Gastroenterology Provider GI Alliance

Apollo also announced in August that it is acquiring a majority stake in GI Alliance, the largest gastroenterology practice in the US, for $785 million. A group of physicians will buy back the remaining 30% minority stake in the company from Waud Capital Partners.[13] GI Alliance employs roughly 700 physicians in 15 states.[14]

This is part of a trend of private equity is increasingly making investments in the broader digestive health market. According to a 2021 report by Physician Growth Partners, nearly 10% of the 14,000 gastroenterologists in the United States were partners or employed by a private-equity-owned company.[15]

When GI Alliance made several add-on acquisitions of smaller GI practices while still under Waud Capital’s ownership, PESP noted that several forces may be driving private equity investment in the sector:

“An aging population means more people are getting colonoscopies to screen for colorectal cancer, and for patients age 65 and older these screenings are covered entirely by Medicare. In 2021 the CDC lowered the recommended age for colorectal cancer screening from age 50 to 45,[16] in part due to increasing incidence of early-onset colorectal cancer in younger adults.[17]

These factors have increased demand for gastroenterology services, aggravating a shortage of gastroenterology providers. The Health Resources and Services Administration (HRSA) estimates that by 2025, the US will face a shortage of more than 1,600 gastroenterologists nationwide.[18]

Finally, the gastroenterology industry has historically been fragmented, creating opportunities for private equity firms to use platform companies to buy up and consolidate providers, as Waud Capital has done over the four years since it acquired GIA.”[19]


August 2022 Buyouts

CompanyTypePE Firm
Texas Digestive Disease ConsultantsGastroenterologyApollo Global Management
Wellspring PharmaceuticalPharmaceuticalAvista Capital Partners
ClaimLogiqEnterprise systemsEir Partners
Radius HealthPharmaceuticalGurnet Point Capital and Patient Square Capital
Northwest Specialty HospitalHospitalHammes Partners
C2 Healthcare SolutionsHealthcare consultingImpact Capital Advisors
Montgomery DMEMedical equipmentIncline Equity Partners
Aspirion Health ResourcesRevenue cycle managementLinden Capital Partners and Varsity Healthcare Partners
Stealth BioTherapeuticsBiotechMorningside Group
Sannova AnalyticalBiopharmaceuticalSFW Capital Partners
Panacea Healthcare SolutionsRevenue cycle managementThe Firmament Group, Columbia Pacific Capital Partners



August 2022 Add-On Acquisitions

CompanyTypePE FirmAdd-on Platform
Ciox HealthMedical records systems22C Capital, Norwest Venture PartnersTarget RWE
ToothFairy TechnologiesDentalAccel-KKRCloud 9 Software
American TechlabBiotechAdelis Equity PartnersSSI Diagnostica
SpringstoneBehavioral healthApollo Global ManagementLifePoint Health
QSIDentalDentalAquiline Capital Partners, Level EquityPlanet DDS
PenRad TechnologiesRadiologyArdan Equity, HG Capital (UK), ST6 PartnersIntelerad Medical Systems
MedServ PlusDiagnostic imagingAtlantic Street CapitalPrestige Medical Imaging
XRV HealthcareDiagnostic imagingAtlantic Street CapitalPrestige Medical Imaging
Heartland Medical Sales & ServicesMedical equipmentAtlantic Street CapitalPrescott’s
Jordan-Young InstituteOrthopedicsAtlantic Street Capital, Capital Southwest BDCOrthoBethesda
PrescribeWellnessEnterprise systemsBlackRock, GTCRTransaction Data Systems
Diameter HealthMedical records systemsBlue Cross and Blue Shield of Florida, Novo Holdings and Prettybrook PartnersAvaility
North Central InstrumentsMedical equipmentBroad Sky PartnersThomas Scientific
MKCM National Case ManagementWorkers’ compensationCentre PartnersThe IMA Group
OneSource RegulatoryRegulatory servicesChurchill Asset Management, Crescent Capital Group, Odyssey Investment PartnersProPharma Group
VIE HealthcareHealthcare consultingChurchill Asset Management, Morgan Stanley Capital Partners, Sheridan Capital Partners, Varagon Capital PartnersSpendMend
TapemarkPharmaceuticaldieviniLTS Lohmann Therapie-Systeme
MedliminalEnterprise systems, revenue cycle managementEir PartnersClaimLogiq
Bienville Orthopaedic SpecialistsOrthopedicsFFL Partners, Thurston GroupMississippi Sports Medicine and Orthopaedic Center
TrullaPharmacy servicesFidus Investment BDC, Morgan Stanley Capital Partners, Sheridan Capital PartnersSpendMend
Freedom MedicalMedical equipmentFreeman Spogli, Owner Resource GroupUS Med-Equip
Lykan BiosciencePharmaceuticalGHO Capital, Pleasant Bay Capital PartnersRoslinCT
CORE AnalyticsEnterprise systemsGI Partners, TA Associates ManagementNetsmart Technologies
Fort Worth Physical TherapyPhysical therapyGrant Avenue CapitalH2 Health
Cura Revenue Cycle ManagementRevenue cycle managementGrowthCurve Capital, Northleaf Capital Partners, Riverside PartnersRevecore
Kemberton Healthcare ServicesRevenue cycle managementGrowthCurve Capital, Northleaf Capital Partners, Riverside PartnersRevecore
Dill Family DentistryDentalLead Capital PartnersLadd Dental Group
TME BCNCancer researchLinden Capital PartnersAptitude Health
StratasanEnterprise systemsMadison Dearborn Partners, Thoma BravoSyntellis Performance Solutions
Seidenberg Protzko Eye AssociatesEye careQuad-C ManagementNJRetina
Dana Point EndodonticsDentalQuad-C ManagementU.S. Endodontics Partners
Bruce FreundDentalRegal Healthcare Capital Partners, The Jordan CompanyDental365
National Home HealthcareHome healthSearchlight Capital PartnersCare Advantage
Competitive HealthBenefits managementThe Cambria GroupRecuro Health
Holliday & AssociatesRevenue cycle managementThe Firmament GroupPanacea Healthcare Solutions
Southeast PsychBehavioral healthThurston GroupARC Psychiatry
Payer CompassHealth techTwin Bridge Capital Partners, Edison Partners, Bain Capital Ventures, Bain Capital, Parthenon Capital Partners and BPEA Private EquityZelis Healthcare
MiraMed Global ServicesRevenue cycle managementVeritas CapitalCoronis Health
Austin Retina AssociatesEye careWebster Equity PartnersRetina Consultants of America
Focus Forward Skilled CareHome health (pediatric)Webster Equity PartnersSonas Home Health Care
Center for Reproductive CareReproductive healthWebster Equity PartnersPinnacle Fertility
Health eFilingsEnterprise systemsWestView Capital PartnersAlpha II


August 2022 PE Growth/Expansion Investments


CompanyTypePE Firm
AequorBiotechAl-Dhowayan Group
RelatientHealth techAlpha Leonis Partners
PSN AffiliatesSurgical hospitalsBTG Pactual
Home Care ExpertsHome healthCane Investment Partners
Southern BiomedicalMedical equipmentCopley Equity Partners
Care.aiHealth techCrescent Cove Advisors
Bonafide Medical GroupEnterprise systems, revenue cycle managementCVF Capital Partners and DCA Partners
STRIVEBenefits managementEssex Bay Capital
Eye Care LeadersEye careGlobal Growth
NOxy Health ProductsPharmaceuticalLa Jolla Holding Co
Lab LogisticsLaboratory servicesLinden Capital Partners
MedGenomeLaboratory servicesNovo Holdings, Sofina and Leapfrog Investments
Medical Technology AssociatesMedical equipmentPNC Riverarch Capital
Recuro HealthTelehealthUndisclosed
EquiscriptPharmaceutical servicesUndisclosed
MedcuraWound careUndisclosed
AEON BiopharmaBiopharmaceuticalUndisclosed












[9] “LifePoint Health Completes Kindred Healthcare Transaction,” December 23, 2021,


[11] Following the Kindred acquisition and spinoff of ScionHealth, LifePoint has around 65 community hospitals, 30 behavioral health and rehab hospitals and an additional 15 in the works, 170 outpatient and post-acute facilities and 50,000 employees.[11] ScionHealth consists of 79 hospital campuses in 25 states, including Kindred’s 61 long-term acute care hospitals and 18 of LifePoint’s community hospitals and associated health systems.







[18] pg. 5.


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