Private Equity Healthcare Acquisitions – January 2023
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 is tracking private equity-backed healthcare acquisitions. Below is a list of private equity healthcare buyouts, growth investments, and add-on acquisitions completed or announced during January 2023. We will continue to track acquisitions on a monthly basis.
See December 2022 acquisitions here.
January saw an uptick from the previous month for private equity in healthcare. Using PitchBook, we tracked 84 private equity acquisitions in January. This figure includes 56 add-on acquisitions, 19 growth/equity investments, and 9 buyouts in the healthcare space across a wide range of subsectors. For comparison, there were only 52 private equity acquisitions in December. (Source: PitchBook).
Private equity keeps attention on medtech
The year opened with continued attention on medtech acquisitions (i.e., medical supplies, devices, equipment, manufacturing, and related outsourcing). There were 7 add-on acquisitions of medtech companies, primarily focused on manufacturing of medical devices and supplies.
Private equity deal value in healthcare devices and supplies saw a sharp upturn during the pandemic, increasing from $11.1 billion to $43.5 billion from 2020 to 2021—despite 2021 only seeing one more deal in this area than the previous year. Additionally, in the decade leading up to 2022, private equity invested over $280 billion in medical technologies.
Medtech acquisitions in January included Axial Medical, which was acquired by the Carlyle Group through its portfolio company Groupe Acrotec. Carlyle acquired Acrotec in February 2021, and is using the company as a platform to expand into services into Europe, Asia, and North America. The add-on company, Axial, was founded in 2014 and operates a 40,000 sq. ft. facility near Philadelphia, where it manufactures orthopedic implants for spine, trauma, and extremity treatments.
Carlyle, alongside private equity firm GTCR, acquired an additional two medtech companies through its portfolio company Resonetics. Resonetics agreed to acquire Memry Corporation and SAES Smart Materials, Inc. from a company based in Italy. The acquired companies are U.S. based, and have operations in Connecticut, New York, and California.
Health IT also sees increased attention
There was also high activity in the related field of Health IT, including 9 add-on acquisitions during the month of January. Health IT includes software and technology relating to data and analytics, care management, enterprise software, and revenue cycle management.
Health IT’s growth has been facilitated by the increasing demand for telehealth services. In 2020 the federal government loosened restrictions on Medicare, allowing for expanded coverage and reimbursement for telehealth services. In December 2022, these provisions were expanded through 2024. In 2021, some analysts were referring to a “quarter-trillion dollar economic opportunity presented by telehealth.”
As electronically enabled healthcare has become more common, policymakers have also sought to expand oversight. One recently proposed CMS rule would require payers to participate in electronic data exchange and automated authorization processes. The proposal would incentivize better recordkeeping, but also require providers to increase IT investment in order to make necessary improvements.
One emblematic deal is Home Care Pulse, which in January acquired Activated Insights and Pinnacle Quality Insight. HCP is owned by private equity firm Cressey & Company. The acquisitions expand on Home Care Pulse’s “clinician-developed eLearning, satisfaction survey, and reputation management solutions” in the post-acute care market.
Outpatient care consolidation in various specialties
January also continued PE activity in outpatient care consolidation, with 11 add-on acquisitions of outpatient care providers. The acquisitions include providers of dental care, eye care, and primary care, among other specialties. This continues trends from 2022, where outpatient care saw a higher amount of private equity deal activity compared to other healthcare areas.
According to a recent survey, hospital and health executives expect large increases in outpatient volume in 2023, consistent with a shift from inpatient to outpatient care since the start of the pandemic. The analysis indicates that 95 percent of executives project higher outpatient volumes, with 40 percent anticipating increases of 10 percent or more.
January Buyouts (9 total)
|Company||Company Type||Secondary Type||PE Firm(s)|
|Cornerstone Healthcare Group||Disbility services||elder/disability support||Apollo Global Management|
|Cloud 9 Software||Health IT||practice management software||Level Equity, Aquiline Capital Partners|
|Medusind Solutions||Health IT||revenue cycle management||Alpine Investors|
|ReviveHealth||Healthcare administration||managed care services||Eir Partners|
|Dental Care Alliance||Healthcare administration||practice management||Harvest Partners, Mubadala Investment Company|
|HouseWorks||Home health||InTandem Capital Partners|
|SteriCare Solutions||Medtech||medical device and supplies manufacturer||BPGC Management, R investments, Spinnaker International|
|Family and Internal Medicine Associates||Outpatient care||primary care|
|Alcami||Pharmaceuticals/Biotech||contract development and manufacturing||Ampersand Capital Partners, GHO Capital, Vistria Group|
January Add-on Acquisitions (56 total)
|Company||Company Type||Secondary Type||PE Firm(s)||Add-on Platform|
|Autism Learning Collaborative||Behavioral health||Havencrest Capital Management||Apara Autism Center|
|Cornerstone Behavioral Health El Dorado||Behavioral health||Apollo Global Management, ATP Private Equity Partners||LifePoint Health|
|South Texas Research Institute||Biotech||Abacus Finance Group, LongueVue Capital||Pinnacle Clinical Research|
|Clinical Trials of America||Clinical research||Centre Partners||The IMA Group|
|Therapeutic Pathways||Disability services||autism||WindRose Health Investors||Trumpet Behavioral Health|
|Early Autism Services (Missouri Operations)||Disability services||applied behavioral analysis||Havencrest Capital Management||Apara Autism Center|
|HealthTrackRx (Toxicology Business Unit)||Drug screening||ABRY Partners, Pantheon International||Aegis Sciences|
|Xtract Solutions||Health IT||Mayson Capital Partners, Sands Capital, Summit Partners, Warburg Pincus||Modernizing Medicine|
|Activated Insights||Health IT||healthcare data & analytics||Cressey & Company, Upside Growth Partners||Home Care Pulse|
|Pinnacle Quality Insight||Health IT||customer survey platform||Cressey & Company, Upside Growth Partners||Home Care Pulse|
|MediSked||Health IT||care management platform||STG Partners||CaseWorthy|
|go2dental||Health IT||informatics software||The Beekman Group||P&R Dental Strategies|
|Hospital IQ||Health IT||enterprise software||Bain Capital||LeanTaaS|
|Invicta Health Solutions||Health IT||enterprise software||WestView Capital Partners||Receivable Solutions|
|ALN Medical (Centennial)||Health IT||revenue cycle management||GPB Capital||Health Prime|
|Welvie||Health IT||OMERS Private Equity, Summit Partners||Paradigm Outcomes|
|Afia||Healthcare administration||consulting||Sheridan Capital Partners||Simione Healthcare Consultants|
|Mission Viejo Emergency Medicine Associates||Healthcare administration||practice management||Apollo Global Management, TowerBrook Capital Partners||US Acute Care Solutions|
|Q Care Plus||Healthcare administration||managed care services||Kinderhook Industries||Avita Pharmacy|
|UserWise||Healthcare administration||consulting||NaviMed Capital||ClariMed|
|Gist Healthcare||Healthcare administration||consulting||Madison Dearborn Partners||Kaufman, Hall and Associates|
|GreenpointMed||Healthcare administration||practice management||Sheridan Capital Partners||Simione Healthcare Consultants|
|Corporate Health Solutions||Healthcare administration||Archetype Growth||Wellness Coaches|
|Perio Protect||Medtech||medical device and supplies manufacturer||Avante Capital Partners, Inverness Graham||Vista Apex|
|Dynalon Labware||Medtech||medical device and supplies manufacturer||StoneCalibre||Anatrace|
|Memry||Medtech||medical device and supplies manufacturer||NXT Capital, Resonetics, The Carlyle Group|
|Axial Medical||Medtech||medical device and supplies manufacturer||The Carlyle Group||Groupe Acrotec|
|QMD (Precision Components)||Medtech||medical supply manufacturing||3i Group||Cirtec Medical|
|J-Pac Medical||Medtech||medical device and supplies manufacturer||PAI Partners, Public Pension Capital||Life Science Outsourcing|
|Avante Oncology Services||Medtech||medical devices||Jordan Industries International, JZ Capital Partners, Sheridan Capital Partners||RS&A|
|Lehigh Valley Health Network (Occupational Health Business in Bethlehem and Allentown)||Occupational health||Welsh, Carson, Anderson & Stowe||Concentra|
|Inland Empire Occupational Medicine||Occupational health||Kain Capital||Akeso Occupational Health|
|Triangle Pediatric Dentistry||Outpatient care||dental care||Alpine Investors, Pacific Lake Partners, Peterson Partners, Saltoun Capital Partners, TTCER Partners||Light Wave Dental|
|Nashville Aesthetic Dentistry||Outpatient care||dental care||Culper Capital Partners, Five Points Capital, Thurston Group||Gen4 Dental Partners|
|Connecticut IV Infusion Center||Outpatient care||infusion center||InTandem Capital Partners||Vivo Infusion|
|Immediate Medical Center||Outpatient care||Kain Capital||Akeso Occupational Health|
|Pinnacle Healthcare (Hollister)||Outpatient care||Angeles Equity Partners, Innova Capital Partners||Agile Occupational Medicine|
|inSite Digestive Health Care||Outpatient care||Gastroenterology||Beach Point Capital Management, Florac, GMB Capital Partners, Triton Pacific Capital Partners, Unio Health Partners|
|Rogers Family Dentistry||Outpatient care||dental care||New MainStream Capital||Cordental Group|
|Haas Vision Center||Outpatient care||eye care||Archimedes Health Investors, NewSpring Capital||Panorama Eyecare|
|Ladiga Medical||Outpatient care||primary care||Beecken Petty O’Keefe & Company||Southeast Primary Care Partners|
|Orthopaedic Associates of Riverside||Outpatient care||orthopedics and podiatry||Trinity Hunt Partners||Unity MSK|
|Urology of Indiana||Outpatient care||urology||Migration Capital, New MainStream Capital||U.S. Urology Partners|
|CBR International||Pharmaceuticals/Biotech||consulting services||GIC (Singapore), Kaiser Foundation Hospitals, Sequoia Capital, TPG||Novotech CRO|
|RMC Pharmaceutical Solutions||Pharmaceuticals/Biotech||consulting services||Riverside Partners||Syner-G Pharma Consulting|
|NightWatch (West Virginia)||Pharmacy||remote pharmacy services||Aquiline Capital Partners||Avel eCare|
|Minneapolis Plastic Surgery||Plastic surgery||OMERS Private Equity, Partners Group||Forefront Dermatology|
|Boston Center for Facial Rejuvenation||Plastic surgery||Waud Capital Partners||Adult & Pediatric Dermatology|
|PRMA Plastic Surgery||Plastic surgery||Webster Equity Partners||Advanced Reconstructive Surgery Alliance|
|PhysicianOne (Occupational Health Business In Connecticut)||Urgent care||Welsh, Carson, Anderson & Stowe||Concentra|
|Animal Skin and Allergy Clinic||Veterinary clinic||Percheron Capital||Animal Dermatology Group|
|BurnAlong||Wellness||online fitness platform||Stone Point Capital||Tivity Health|
|Minneapolis Anti-Aging & Skin Clinic||Wellness||OMERS Private Equity, Partners Group||Forefront Dermatology|
|Boca Fertility||Women’s Health||LongueVue Capital||Fertility Specialists Network|
January PE Growth/Expansion Investments (19 total)
|Company||Company Type||Secondary Type||Active Investors|
|PsychoGeriatric Services||Behavioral health||Maven Equity Partners|
|CDI Laboratories||Biotech||BroadOak Capital Partners, Johns Hopkins Technology Ventures, National Institutes of Health, National Science Foundation, Puerto Rico Industrial Development Company, Puerto Rico Science, Technology & Research Trust, Science, Technology and Research Trust, U.S. Department of Health and Human Services|
|Velsera||Biotech||research and development||SJF Ventures, Summa Equity|
|Intelerad Medical Systems||Health IT||medical imaging software||Ardan Equity, HgCapital (UK), ST6 Partners, TA Associates Management|
|ShiftKey||Health IT||enterprise software||ACE & Company, Ares Management, Clearlake Capital Group, Health Velocity Capital, Lorient Capital Management, Pantheon|
|CoPilot (Maitland)||Health IT||reimbursement platform||QHP Capital, Stellus Capital Management|
|Qualifacts Systems||Health IT||enterprise software||Clanton Capital, Martis Capital, Warburg Pincus|
|Health Payment Systems||Health IT||billing software||Caltius Equity Partners, Hexagon (Denver), SV Health Investors, SVB Capital|
|Family Tree Private care||Home health||elder/disability support||The Firmament Group|
|Principle Health Systems||Laboratory services||Platform Partners|
|VERO Biotech||Medtech||medical device and supplies manufacturer||Brace Pharma Capital, Horizon Technology Finance BDC, MVM Partners, Petrichor Healthcare Capital Management, Runway Growth Capital BDC|
|PBS Biotech||Medtech||medical device and supplies manufacturer||Avego Management, BroadOak Capital Partners, Current Yield with Participation Fund, InterVest|
|Allied Physicians Group||Outpatient care||pediatric care||Ascend Partners (Healthcare)|
|Muir Wood Adolescent And Family Services||Outpatient care||Avesi Partners|
|Integrated Pain Associates||Outpatient care||pain management||Florac, Star Mountain Capital, Triton Pacific Capital Partners|
|Cytovia Therapeutics||Pharmaceuticals||biopharmaceuticals||Immune Pharmaceuticals|
|BioRay Pharmaceutical||Pharmaceuticals||biopharmaceuticals||PAG, Taizhou State-owned Capital Operation Group Co., Ltd., Zhejiang Hisun Pharmaceutical Company|
|Resilience||Pharmaceuticals/Biotech||manufacturing and development||8VC, AIM13 CV Partners, Applied Ventures, ARCH Venture Partners, Catalio Capital Management, Dragoneer Investment Group, Echo Investment Capital, Government of Canada, GV, Jameel Investment Management Co., Koch Disruptive Technologies, Lux Capital, Magnetic Ventures, MSD Partners, Mubadala Investment Company, New Enterprise Associates, Pfizer Ventures, Public Sector Pension Investment Board, Raptor Group, Risk & Return|
|Array Behavioral Care||Telehealth||BPEA Private Equity, CVS Health Ventures, Frist Cressey Ventures, Harbour Point Capital, Health Velocity Capital, HLM Venture Partners, Hyde Park Angels, Impact Engine, Ingleside Investors, OCA Ventures, OSF Ventures, Wasson Enterprise, Wells Fargo Strategic Capital, Wintrust Ventures|
 Caitlin Owens. “Private Equity’s Pandemic-Era Health Care Push.” Axios, March 23, 2022. https://www.axios.com/2022/03/23/pharmaceuticals-private-equity-medical-devices-drug-prices.
 American Investment Council. “Improving Medical Technologies: Private Equity’s Role Supporting Life Sciences,” March 22, 2022. https://www.investmentcouncil.org/improving-medical-technologies-private-equitys-role-supporting-life-sciences/.
 John McNulty. “Carlyle’s Acrotec Acquires Family-Owned Axial Medical.” Private Equity Professional, February 13, 2023. https://peprofessional.com/blog/2023/02/13/carlyles-acrotec-acquires-family-owned-axial-medical/.
 Carlyle. “Resonetics to Acquire SAES Medical Nitinol Business | Carlyle,” January 9, 2023. https://www.carlyle.com/media-room/news-release-archive/resonetics-to-acquire-saes-medical-nitinol-business.
 Christine Clements, Aileen Murphy, Michael Sutton, Arushi Pandya, and Kendall Kohlmeyer. “Key Healthcare Provisions of the Consolidated Appropriations Act, 2023.” Healthcare Law Blog, January 6, 2023. https://www.sheppardhealthlaw.com/2023/01/articles/federal-healthcare-legislation/key-healthcare-provisions-of-the-consolidated-appropriations-act-2023/.
 Oleg Bestsennyy, Greg Gilbert, Alex Harris, and Jennifer Rost. “Telehealth: A Quarter-Trillion-Dollar Post-COVID-19 Reality?” McKinsey, July 9, 2021. https://www.mckinsey.com/industries/healthcare/our-insights/telehealth-a-quarter-trillion-dollar-post-covid-19-reality.
 JD Supra. “Private Equity and Digital Health in 2023: Policy Updates and Trends to Watch,” February 1, 2023. https://www.jdsupra.com/legalnews/private-equity-and-digital-health-in-2893899/.
 Home Care Pulse. “Home Care Pulse Acquires Activated Insights and Pinnacle Quality Insight.” Cision PR Newswire, January 19, 2023. https://www.prnewswire.com/news-releases/home-care-pulse-acquires-activated-insights-and-pinnacle-quality-insight-301725299.html.
 Private Equity Stakeholder Project. “New Report Analyzes a Frenzy of Private Equity Activity in Healthcare Companies,” February 23, 2023. https://pestakeholder.org/news/new-report-analyzes-a-frenzy-of-private-equity-activity-in-healthcare-companies/.
 Guidehouse. “2023 Health System Trends,” March 2, 2023. https://guidehouse.com/insights/healthcare/2023/2023-health-system-trends-form?lang=en.