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 July 2022. We will continue to track acquisitions on a monthly basis.
July saw multiple private equity acquisitions of physical therapy practices, reflecting continued PE interest in the sector. In early 2022, analysts noted that PE firms remain bullish on physical therapy, “driven by the strong demographic trends and outstanding consolidation opportunity.”  In 2018, there were estimated to be at least 16,000 outpatient physical therapy clinics in the U.S., with no provider accounting for more than 5% of total industry revenue or 10% of market share by number of clinics.  Now in 2022, the estimated number of outpatient physical therapy clinics has more than doubled to 38,000, with still no providers exceeding 10% market share. 
BDT Capital Partners-owned Athletico Physical Therapy has acquired two more physical therapy practices, expanding its presence in Mississippi and Oklahoma. Athletico currently has approximately 8,000 employees at more than 900 locations across 25 states , acquiring at least 12 practices since its PE-backing in 2014 . The company has more than doubled in size since that year, when it had approximately 300 locations in eight states . According to a recent report, Athletico Physical Therapy has the fourth largest market share (2.4%) of the outpatient physical therapy market .
Athletico acquired two other physical therapy firms at the beginning of 2022, expanding by 18 and 259 locations. The more recent July acquisitions include Crossroads Rehabilitation Physical and Occupational Therapy, which adds nine locations to Athletico; and Action Physical Therapy and Rehabilitation, adding five locations.
Other PE acquisitions of physical therapy providers in July:
- Upstream Rehabilitation, which is owned by PE firms Athyrium Capital Management, Stags Participations, Shumway Capital, has bought Louisiana-based Acadian Comprehensive Therapy Services (ACTS). The acquisition makes Upstream the largest dedicated physical therapy company in the US, with more than 1,200 owned or managed clinics in 28 states .
- Beecken Petty O’Keefe & Company’s (BPOC) Alliance Physical Therapy Partners acquired Excel Rehab & Sports, expanding into Tennessee and South Carolina .
- Thomas H. Lee Partners’s Professional Physical Therapy acquired NY-based hand therapy clinic Complete OT and OTA Services. Professional operates over 190 facilities in the Northeast .
Also notable are investments in workplace health services. In July, Kain Capital-owned Akeso Occupational Health acquired WorkPartners Occupational Health Specialists . Additionally, HealthCues received an undisclosed amount of development capital from its PE-sponsor, Innova Capital Partners . Akeso, WorkPartners, and HealthCues are occupational health providers, which focus on “the interrelationship between the health of workers and their workplaces .”
The most common occupational health services used by employees are treatment of work-related injury or illness, physical exams, injury management, and drug testing. Occupational health providers may also perform workplace health and safety functions, such as analyses of job requirements, industrial surroundings, and on-the-job risk factors .
Among employers with 5,000 or more employees, prevalence of occupational health services declined from 35% to 25% between 2010 and 2020. The most common industries to provide occupational health services are healthcare (54% of employers with 5,000 or more employees), manufacturing (28%), and financial services (27%) .
Recent PE deals involving occupational health providers have primarily been add-on acquisitions. Since 2020, approximately 20 occupational health providers have been added onto existing PE portfolio companies .
July 2022 Buyouts
|Lexitas Pharma Services||Clinical trials, contract research organization||QHP Capital (management company for NovaQuest Private Equity)|
|Alliance Pharma (United States)||Contract research organization||Kohlberg Kravis Roberts|
|Monte Nido & Affiliates||Eating disorder treatment||Revelstoke Capital Partners|
|Curtis Learning||Healthcare education, training||Renovus Capital Partners|
|Open Health Group||Healthcare marketing||Astorg|
|Hanger (NYS: HNGR) (announced)||Medical devices||Patient Square Capital|
|EG Medical||Medical devices||Dunes Point Capital|
|Natus Medical||Newborn diagnostic equipment||ArchiMed|
|Theraplay||Pediatric outpatient therapy||Ivy Rehab|
|PANTHERx Rare||Pharmacy||General Atlantic, Vistria Group, Nautic Partners|
|On Demand Solutions||Practice management||Performant Capital, Goldman Sachs Asset Management|
|Novum Orthopedic Partners||Practice management (orthopedic and spine)||United Musculoskeletal Partners|
|Coronis Health||Revenue cycle management||Veritas Capital|
July 2022 Add-On Acquisitions
|Company||Type||PE Firm(s)||Add-on Platform|
|Hallmark Youthcare Richmond (subsidiary of Hallmark Systems)||Behavioral health, mental health||Petra Capital Partners, Elm Creek Partners, Granite Growth Health Partners, Harbert Management||Acute Behavioral Health|
|Allied Mobile X-Ray & Ultrasound||Diagnostic services||Undisclosed||TridentCare|
|Commonwealth Eye Care Associates (announced)||Eye care||Partners Group, Princess Private Equity Holding, Enowe||Eyecare Partners|
|Retina Institute of Virginia (announced)||Eye care||Partners Group, Princess Private Equity Holding, Enowe||Eyecare Partners|
|Bradenton Eye Clinic||Eye care||LLR Partners||Eye Health America|
|Rockland Eye Physicians and Surgeons||Eye care||Blue Sea Capital, GCM Grosvenor, GoldPoint Partners, Hamilton Lane||Spectrum Vision Partners|
|Physicians Ambulatory Surgery Center||Gastroenterology, urology||Migration Capital, New MainStream Capital||U.S. Urology Partners|
|The CM Group (announced)||Health tech||Astorg||Open Health Group|
|Galen Healthcare Solutions||Healthcare information technology||Five Arrows Principal Investments, Five Arrows Capital Partners,, Nordic Capital, Susquehanna Growth Equity, TA Associates Management||RLDatix|
|Exchange EDI||Healthcare practice management||Marlin Equity Partners||ImagineSoftware|
|Harmony Healthcare (Tampa)||Healthcare staffing, consulting||Trilantic North America, Neuberger Berman||Addison Group|
|Instant Care of Arizona||Home healthcare||Coltala Holdings, Trive Capital||Choice Health at Home|
|Kind Hearts Home Health Care||Home healthcare||Martis Capital||Community Based Care|
|Silverado Hospice (Ventura, San Mateo and Salt Lake City) (subsidiary of Silverado Senior Living)||Home healthcare, hospice||Vistria Group||Mission Healthcare|
|Trinity Family Health Care Center (announced)||Hospitals/clinics||MBF Healthcare Partners||Palm Medical Centers|
|AllCells||Human cells provider||Water Street Healthcare Partners||Discovery Life Sciences|
|Elgin Laboratory Physicians||Laboratory services (pathology)||BPEA Private Equity Firm, Iron Path Capital, Sweetwater Private Equity||Versant Diagnostics|
|Pathology Consultants of Chicago||Laboratory services (pathology)||BPEA Private Equity Firm, Iron Path Capital, Sweetwater Private Equity||Versant Diagnostics|
|MCM Solutions for Better Health||Managed care, health management||Great Point Partners||Valenz|
|Rockpointe||Medical education||The Riverside Company, Renovus Partners||Clinical Education Alliance|
|Cherub Medical Supply||Medical products distributor||Tandem Capital Partners||Pediatric Home Service|
|Ganse Apothecary||Medical products distributor||WindRose Health Investors||Terrapin Pharmacy|
|Anew Era TMS & Psychiatry||Mental health clinic||Webster Equity Partners||Discovery Behavioral Health|
|Complete OT and OTA Services||Orthopedic clinic||Thomas H. Lee Partners||Professional Physical Therapy|
|Relievus||Pain management services||NexPhase Capital||Clearway Pain|
|Examoto||Pharmaceutical services||Northwood Healthcare Partners, Constitution Capital Partners, Avista Capital Partners||United BioSource|
|D Cube Analytics||Pharmaceutical services||Trinity Life Sciences||Kohlberg & Company|
|Crossroads Rehabilitation Physical and Occupational Therapy Services||Physical and occupational therapy||BDT Capital Partners||Athletico Physical Therapy|
|Acadian Comprehensive Therapy Services||Physical and occupational therapy||Stags Participations, Shumway Capital, Athyrium Capital Management||Upstream Rehabilitation|
|Excel Rehabilitation and Sports Enhancement||Physical and occupational therapy||Beecken Petty O’Keefe & Company||Alliance Physical Therapy Partners|
|Action Physical Therapy and Rehabilitation||Physical therapy||BDT & Company||Athletico Physical Therapy|
|Foot & Ankle Specialists||Podiatric care||New MainStream Capital||Foot & Ankle Specialists of the Mid-Atlantic|
|San Antonio Recovery Center||Substance use treatment||Webster Equity Partners, BPEA Private Equity||BayMark Health Services|
|Animal Clinic of Monett||Veterinary||Main Street Capital BDC||Heritage Animal Health|
|WorkPartners Occupational Health Specialists||Workplace health services||Kain Capital||Akeso Occupational Health|
July 2022 Growth/Expansion Investments
|Ascendia Pharmaceuticals||Contract development and manufacturing organization||undisclosed|
|ClinChoice||Contract research organization||Legend Capital, Oriza Holdings, Sherpa Healthcare Partners, Taikang Insurance Group Company, Apricot Capital, Lilly Asia Ventures|
|Athenix Body Sculpting Institute||Cosmetic and plastic surgery||Latticework Capital Management|
|Ideal Dental Management Partners||Dental business administration||ONCAP|
|West Coast Dental Services||Dental care||Court Square|
|TMS Solutions||Depression treatment and therapy||Cowles Company|
|Lyniate||Healthcare data tech||HgCapital Trust|
|Seniorlink||Healthcare management (elder care)||Atlantic Merchant Capital|
|Tebra (Healthcare)||Healthcare practice management||Commonfund, Greenspring Associates, HLM Venture Partners, Montreux Growth Partners, OpenView Venture Partners, StepStone Group, Stripes, Toba Capital, Transformation Capital, (follow-on investor, 1) Golub Capital|
|Cerbo||Healthcare practice management||Miramar Equity Partners|
|IDION||Monitoring equipment||Innova Capital Partners|
|Pharmaceutics International||Pharmaceutical services||undisclosed|
|Everside Health||Primary care||Endeavor Catalyst, New Enterprise Associates, Oak HC/FT, Alta Partners [and other undisclosed investors|
|ValueHealth||Specialty surgical care||undisclosed|
|HealthCues||Workplace health services||Innova Capital Partners|
 Pitchbook, accessed August 2022.
 Pitchbook, accessed August 2022.
 Pitchbook, accessed August 2022.