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Private Equity Health Care Acquisitions – January 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 January 2021. We will continue to track acquisitions on a monthly basis.

See December 2020 acquisitions here.

Interim Healthcare – Levine Leichtman Capital Partners

Levine Leichtman Capital Partners’s Interim Healthcare in January acquired home health and hospice franchises in San Diego, CA. Interim Healthcare is the US business for Levine Leichtman’s Caring Brands International, which operates home health and hospice franchises internationally. This is the third acquisition made by Caring Brands International in the last six months; it acquired hospice franchises in Ireland and Australia in June and November 2020.[i]

Levine Leichtman owns multiple other health care companies, including Genova Diagnostics, Capsa Healthcare, Monte Nido, Suvet, and Therapeutic Research Center.[ii]

Two of Levine Leichtman’s health care companies paid to settle lawsuits with the US government alleging billing fraud last year, including Interim Healthcare.

In March 2020, an Interim Healthcare franchise paid $1.75 million to resolve claims that it defrauded Medicare and Medicaid by submitting claims for patients not eligible for the hospice benefit.  The government alleged that the company’s business practices resulted in the submission of false claims, including “setting aggressive goals for enrolling patients and failing to supervise properly the admission practices of its staff and medical directors.”[iii]

In April 2020, Levine Leichtman’s Genova Diagnostics, a clinical laboratory services company, agreed to pay up to $43 million to resolve allegations that it billed for medically unnecessary tests.[iv] The complaint in the lawsuit alleged that, “Genova, at the direction and with the knowledge of its owners and managers and in a wrongful effort to increase revenues, systematically bills Medicare and Medicaid for the Panels’ tests.”[v]

Levine Leichtman Capital Partners V and multiple Levine Leichtman directors were named as defendants in the suit. The complaint stated that Levine Leichtman is a controlling shareholder of Genova, that Levine Leichtman Directors constitute a majority of its board of directors, and at all relevant times Levine Leichtman controlled the company.[vi]

Audax Group

Private equity firm Audax Group was particularly active in January, making at least ten health care acquisitions.  

Audax’s dental services company 42 North Dental acquired three new practices: JD Howard Dental (New Hampshire), Restorative and Aesthetic Dental Associates (Maine), and The Center for Pediatric Dental Care and Orthodontics (Massachusetts). 42 North now operates in 88 locations.[vii]

United Urology Group, Audax’s urology practice management company, invested in Urological Associates of Southern Arizona and Arizona Institute of Urology.[viii] Audax formed United Urology Group in 2016 when it acquired Chesapeake Urology Associates.[ix]

Active Day, Audax’s adult day care company, acquired Community VNA in Massachusetts and Our Father’s House in Ohio.[x]

Audax’s Axia Women’s Health acquired Care First OB/GYN Group, a women’s health clinic in New Jersey. Audax formed Axia in 2017 as a platform a variety of women’s health specialties. Audax is now reportedly looking to sell Axia.[xi]

Audax also acquired Texas ENT Specialists and combined it with its South Florida ENT Specialists. Both companies provide services to ear, nose, and throat (ENT) practices.[xii]

Finally, Audax partnered with Linden Capital Partners to acquire StatLab Medical Products, a manufacturer of medical prodicts.[xiii]

Audax previously owned prison healthcare company Correct Care Solutions, which was sued at least 1,395 times.[xiv] Correct Care’s founder has been indicted for bribery that allegedly occurred while Audax owned the company.[xv]

Add-on acquisitions

Company NameAcquiring entityPE FirmType
Syntactx North American Science Associates ArchiMed and Ares Capital Clinical research
Sun Nuclear Corporation Mirion Technologies Ardian, Charterhouse Capital Partners and Bpifrance Medical devices
Progressive Radiology Solis Mammography Ares Capital and Madison Dearborn Partners Medical imaging
Arizona Institute of Urology United Urology Group Audax Group Urology
Care First OB/GYN Group Axia Women’s Health Audax Group Women’s health
JD Howard Dental 42 North Dental Audax Group Dental services
Restorative and Aesthetic Dental Associates 42 North Dental Audax Group Dental services
Texas ENT Specialists South Florida ENT Associates Audax Group Ear, nose, and throat
The Center for Pediatric Dental Care and Orthodontics 42 North Dental Audax Group Dental services
Urological Associates of Southern Arizona United Urology Group Audax Group Urology
Community VNA Active Day Audax Group Behavioral health
Our Father’s House Active Day Audax Group Behavioral health
Bridgeway Health Services Reliant Home Health Broadgate Capital and Merit Capital Partners Home health
Eyes of York Vision Innovation Partners Centre Partners Eye care
Clarion Brands Bridges Consumer Healthcare Charlesbank Capital Partners Pharmaceuticals
Drexi Advanced Medical Pricing Solutions Cimarron Healthcare Capital, RAF Industries, Leavitt Equity Partners Health care billing services
Saliency Bioclinica Cinven Medical devices
Grace Hospice & Palliative Care Traditions Home Health Care Dorilton Capital Home health and hospice
Traditions Home Care Traditions Home Health Care Dorilton Capital Home health and hospice
Secure Home Care Traditions Home Health Care Dorilton Capital Home health and hospice
Heritage Hospice Traditions Home Health Care Dorilton Capital Home health and hospice
Farley Center Summit Behavioral Healthcare FFL Partners Behavioral health
Hometown Rehab CORA Health Services Gryphon Investors Physical therapy
MediDrapes Infab Corporation Hammond, Kennedy, Whitney & Company Medical supplies
HIPAA One Intraprise Health Health Enterprise Partners Health tech
MicroWorks Infinity laboratories Imperial Capital Group Microbiological testing services
Keystone Physics Associates In Medical Physics L2 Capital Partners Radiation services
Mednow Urgent Care Xpress Wellness Urgent Care Latticework Capital Management Urgent Care
Midatlantic Urology Solaris Health Lee Equity Partners Urology
Interim HealthCare (San Diego Franchises) Interim HealthCare Levine Leichtman Capital Partners Home health and hospice
Slice Manufacturing Studios Avalign Technologie Linden Capital Partners and Harvest Partners Medical devices
American Renal Associates Innovative Renal Care Nautic Partners Dialysis services
Community Eye Center Quigley Eye Specialists New Harbor Capital and Dellin Investments Eye care
Docent Health GetWellNetwork Pamplona Capital Management Health tech
Midwest Eye Center EyeSouth Partners Shore Capital Partners Eye care
PEDIA (Chicago) Redwood Dental Silver Oak Services Partners Dental services
Marketware Medsphere Systems Sixth Street Partners, NextEquity Partners Health care marketing tech
Project Farma Precision Medicine Group The Blackstone Group, Berkshire Partners, TPG Growth, Vida Ventures (Boston), and Oak HC/FT Biomanufacturing
Exscribe Modernizing Medicine Warburg Pincus, Summit Partners and Mayson Capital Partners Health tech
Associates In Gastroenterology One GI Webster Equity Partners Gastroenterology
Companion Hospice (California Operations) Bristol Hospice Webster Equity Partners Hospice
ExceleraRx Shields Health Solutions Holdings Welsh, Carson, Anderson & Stow Health tech
Dr. Joseph Newmark (Dermatology Practice) Schweiger Dermatology Group Zenyth Partners, LNK Partners and LLR Partners Dermatology
Montgomery Dermatology Schweiger Dermatology Group Zenyth Partners, LNK Partners and LLR Partners Dermatology

New PE investments/buyouts

Company NamePE FirmType
Coastal Occupational Akeso Medical Holdings and Kain Capital Occupational health
Genezen Laboratories Ampersand Capital Partners Biotech and pharmaceuticals
StatLab Medical Products Audax Group and Linden Capital Partners Medical supplies
Healthcare Fraud Shield Charlesbank Capital Partners Health tech
CareMetx General Atlantic Health tech
Valeo Home Healthcare Grant Avenue Capital Home health
Corza Medical GTCR Medical devices
Crothall Laundry Services (Arizona) H.I.G. Capital Health care laundry services
Electron Microscopy Sciences Inverness Graham Medical supplies
Femwell Group Health LightBay Capital Women’s health
CoreRx NovaQuest Private Equity Contract development & manufacturing
Careismatic Brands Partners Group Medical apparel
Southern Scripts Water Street Healthcare Pharmacy benefits management
Kiniciti Welsh, Carson, Anderson & Stowe Cell and gene therapy
PrecisionMed West-Atlantic Partners Biopharmaceuticals

[i]https://www.prnewswire.com/news-releases/levine-leichtman-capital-partners-portfolio-company-caring-brands-international-acquires-interim-healthcare-of-san-diego-third-add-on-acquisition-in-last-six-months-301212173.html

[ii]https://www.llcp.com/portfolio

[iii]https://www.justice.gov/usao-ndga/pr/hospice-pay-175-million-resolve-false-claims-act-allegations

[iv]https://www.justice.gov/opa/pr/testing-laboratory-agrees-pay-43-million-resolve-allegations-medically-unnecessary-tests#:~:text=Genova%20Diagnostics%20Inc.%2C%20a%20clinical,the%20Department%20of%20Justice%20announced

[v]https://www.docketbird.com/court-documents/Landis-v-Genova-Diagnostics-Inc-et-al/Qui-Tam-FIRST-AMENDED-COMPLAINT-with-Jury-Demand-against-All-Defendants-filed-by-Darryl-Landis-emw-Modified-text-on-5-9-2018/ncwd-1:2017-cv-00341-00018

[vi]https://www.docketbird.com/court-documents/Landis-v-Genova-Diagnostics-Inc-et-al/Qui-Tam-FIRST-AMENDED-COMPLAINT-with-Jury-Demand-against-All-Defendants-filed-by-Darryl-Landis-emw-Modified-text-on-5-9-2018/ncwd-1:2017-cv-00341-00018 pg. 8.

[vii]https://www.prnewswire.com/news-releases/42-north-dental-adds-its-10th-supported-practice-in-new-hampshire-with-the-affiliation-of-jd-howard-dental-located-in-dover-nh-301217390.html

[viii]https://www.prnewswire.com/news-releases/united-urology-group-expands-footprint-in-arizona-with-newest-affiliates-arizona-institute-of-urology-and-urological-associates-of-southern-arizona-301205547.html

[ix]https://www.audaxprivateequity.com/portfolio/united-urology-group

[x]https://webcache.googleusercontent.com/search?q=cache:uTBYcL0jlfMJ:https://www.pehub.com/audax-backed-active-day-makes-two-acquisitions/+&cd=1&hl=en&ct=clnk&gl=us

[xi]https://webcache.googleusercontent.com/search?q=cache:396emhTji9UJ:https://www.pehub.com/audax-backed-axia-womens-health-buys-care-first/+&cd=1&hl=en&ct=clnk&gl=us

[xii]https://www.businesswire.com/news/home/20210111005931/en/South-Florida-ENT-Associates-and-Texas-ENT-Specialists-Join-Forces-as-a-Combined-Entity-Backed-by-Audax-Private-Equity

[xiii]https://www.businesswire.com/news/home/20210112005593/en/Linden-Capital-Partners-and-Audax-Private-Equity-Invest-in-StatLab-Medical-Products

[xiv]https://www.huffpost.com/entry/correct-care-solutions-detention-center-lawsuits_n_5bd755fce4b07427610a0ccf

[xv]https://pestakeholder.org/founder-of-hig-capital-owned-wellpath-indicted-on-federal-bribery-charges/

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