Private Equity Health Care Acquisitions – October 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 or announced during October 2021. We will continue to track acquisitions on a monthly basis.
See September 2021 acquisitions here.
Private equity firms acquired at least ten dental services and supplies companies in October 2021, continuing a growing trend of increased private equity investment in the sector.
Shore Capital Partners, through its orthodontic practice management company Southern Orthodontic Partners (SOP), acquired three companies in Illinois and Missouri with a total of seven locations.
SOP has grown quickly – from five orthodontic practice locations when it launched in 2020 to 31 locations across seven states: Texas, Florida, Georgia, Virginia, Tennessee, Illinois, and Missouri.
Dental Acquisitions by PE Firms – October 2021
|Companies||Type||PE Firm||Add-on Acquirer|
|Dynamic Dental Solutions||Dental lab||Cerberus Capital Management||National Dentex|
|Palisades Dental||Dental supplies||Inverness Graham and Avante Capital Partners||Vista Apex|
|Summit Dental Center||DSO||New Mountain Capital||Western Dental Services|
|Labs.Dental||Dental lab||Prairie Street Capital||n/a|
|Cumberland Pediatric Dentistry & Orthodontics||DSO||Rock Mountain Capital||Spark Orthodontics|
|Alizadeh & Schreiner Orthodontics||DSO||Shore Capital Partners||Southern Orthodontic Partners|
|Amazing Smiles Orthodontics||DSO||Shore Capital Partners||Southern Orthodontic Partners|
|Unger Orthodontics||DSO||Shore Capital Partners||Southern Orthodontic Partners|
|Britely Dentures + Implants||DSO||Vista Verde Group||n/a|
|Dental Monitoring||Dental tech||Vitruvian Partners and Mérieux Equity Partners||n/a|
Western Dental, owned by New Mountain Capital, acquired Summit Dental Center and its seven practice locations in Texas. Western Dental is the largest dental chain in California, and has 343 locations across California, Nevada, Arizona, Texas and Alabama. The company is the largest provider of dental services under Medicaid in California.
New Mountain Capital has owned Western Dental since 2012 when it acquired the company from private equity firm Court Square Capital Partners. New Mountain reportedly tried to sell Western Dental in 2019 but was unsuccessful.
In August 2021, Western Dental agreed to pay up to $3 million to settle a class action lawsuit alleging that the company charged unlawful late fees. The alleged unlawful activity took place between 2014 and 2019, entirely under New Mountain’s ownership.
In July 2020, Western Dental settled another class action lawsuit alleging that it sent unsolicited telemarketing text messages to consumers after they actively opted out.
In addition to Western Dental, New Mountain also owns pediatric dental company Benevis (formerly known as Kool Smiles). New Mountain acquired Benevis out of bankruptcy in October 2020 after Benevis went through several other private equity owners and paid a $24 million settlement with the US Department of Justice for Medicaid fraud, including allegedly performing medically unnecessary root canals on babies.
Earlier this year PESP released a report examining the impacts of private equity ownership of Dental Service Organizations (DSO) like Western Dental and Southern Orthodontic Partners, which contract with dentists and orthodontists to provide practice management services to dental practices.
PESP found that while DSOs still make up a relatively small portion of the overall US dental industry, private equity firms dominate the DSO market; 27 of the top 30 DSOs are private-equity-owned.
The report raises concern about private equity’s growing footprint in the dental industry and impacts on patient care:
“The private equity investment model, which typically targets outsized returns over relatively short time horizons, may incentivize profit-seeking tactics that are harmful to patients. Payment structures between DSOs and dentists have been found to create perverse incentives that lead to overtreatment of patients, misleading advertising schemes, Medicaid fraud, and other problematic practices in order to reach revenue targets set by DSOs and maximize profit.”
See our July 2021 report “Deceptive Marketing, Medicaid Fraud, and Unnecessary Root Canals on Babies: Private Equity Drills into the Dental Care Industry”
October PE Buyouts
|Eating Recovery Center||Behavioral health||Apax Partners, Oak HC/FT|
|MDVIP||Concierge medicine||Charlesbank Capital Partners and Goldman Sachs Asset Management|
|Metagenics||Vitamin supplements||Gryphon Investors|
|Health Network One||Health network||H.I.G. Capital|
|Centerpeace Home Healthcare and Companion Services||Home health||HCAP Partners and Bain Capital|
|BioIVT||Bippharmaceuticals||Linden Capital Partners|
|Smart Data Solutions||Revenue cycle management||Madison Capital Funding, Parthenon Capital Partners, Blue Venture Fund|
|Springstone||Behavioral health||Medical Properties Trust|
|SpecialtyCare||Surgical services||Morgan Stanley Infrastructure Partners|
|Mindful Health Solutions||Behavioral health||Norwest Venture Partners and Canadian Imperial Bank of Commerce|
|Labs.Dental||Dental||Prairie Street Capital|
|Agape Care Group||Hospice||Ridgemont Equity Partners|
|Outpatient Imaging Affiliates||Radiology||The Cranemere Group|
|Good Heart Recovery||Behavioral health||Tide Rock Holdings|
|MediStreams||Revenue cycle management||TT Capital Partners|
|Britely Dentures + Implants||Dental||Vista Verde Group|
|Dental Monitoring||Dental||Vitruvian Partners and Mérieux Equity Partners|
|Caring Brands International (Interim Healthcare)||Home health||Wellspring Capital Management|
|Pentec Health||Infusion therapy||Wellspring Capital Management|
|Delta Med||Medical devices||White Bridge Investments|
OctoberPE Add-on Acquisitions
|Company||Type||PE Firm||Add-on Acquirer|
|eQHealth Solutions||Health tech||Apax Partners||KEPRO|
|Alpine Anesthesia||Anesthesia||Archimedes Health Investors and Assured Investment Management||National Partners in Healthcare|
|Ambra Health||Health tech||Ardan Equity Partners and HG Capital (UK)||Intelerad Medical Systems|
|Dosimetry Badge||Medical devices||Ardian, Bpifrance and Charterhouse Capital Partners||Mirion Technologies|
|ProScience Analytical Services||Laboratory services||Aurora Capital Group and The Cambria Group||Pace Analytical Services|
|Velesco Pharmaceutical Services||Laboratory services||Aurora Capital Group and The Cambria Group||Pace Analytical Services|
|CIVCO Radiotherapy||Medical devices||Blue Wolf Capital Partners||Roper Technologies|
|Nanosyn||Pharmacenticals||Bridgepoint Advisers and Temasek Holdings||Element Materials Technology|
|Port 45 Recovery||Behavioral health||Bridges Fund Management||Sunrise Treatment Center|
|Diagnostics Research Group||Clinical research||Centre Partners||The IMA Group|
|Dynamic Dental Solutions||Dental||Cerberus Capital Management||National Dentex|
|Halo Health||Health tech||Charlesbank Capital Partners||Symplr|
|Lyophilization Services of New England||Pharmacenticals||Churchill Asset Management, Mubadala Development Company and Kohlberg & Company||PCI Pharma Services|
|TransUnion Healthcare||Revenue cycle management||Clearlake Capital Group||nThrive|
|First Call Ambulance||Emergency services||Enhanced Healthcare Partners||Priority Ambulance|
|Canna Care Docs||Medical marijuana clinics||Gladstone Capital BDC, Merida Capital Holdings, Lizada Capital, Artemis Holdings Group and Verte Opportunity||New Frontier Data|
|AdvantEdge Healthcare Solutions||Revenue cycle management||GPB Capital||Health Prime International|
|Homecare of Mid Missouri||Hospice||H.I.G. Capital||St. Croix Hospice|
|Palisades Dental||Dental||Inverness Graham and Avante Capital Partners||Vista Apex|
|Gastroenterology Associates (Arizona)||Gastroenterology||Kohlberg Kravis Roberts||Covenant Physician Partners|
|New Heights Integrative Therapy||Physical therapy||Lindsay Goldberg||PT Solutions|
|Pilgrimage Hospice||Hospice||Lorient Capital Management||Transitions Hospice|
|Advance Hospice Care||Hospice||Lorient Capital Management||Transitions Hospice|
|Agusti Medical||Hospice||Lorient Capital Management||Transitions Hospice|
|Welltok||Health tech||Marlin Equity Partners||Virgin Pulse|
|Summit Dental Center||Dental||New Mountain Capital||Western Dental Services|
|Eligibill||Revenue cycle management||New Mountain Capital and Eir Partners||Cloudmed|
|UNTU (healthcare media)||Healthcare consulting||ORIX Capital Partner||Optimad Media|
|24 Hour Home Care||Home health||Pantheon Capital Partners||Team Services Group|
|CBPartners||Healthcare consulting||Parthenon Capital Partners||Trinity Partners|
|CEI Vision Partmers (Cincinnati Eye Institute)||Eye care||Partners Group||Eyecare Partners|
|Pelvalon||Medical devices||Patricia Industries||Laborie Medical Technologies|
|Young Medical Spa||Cosmetic services||Potomac Equity Partners||Laser MD MedSpa|
|Medval Scientific Information Services||Healthcare communications||Renovus Capital Partners||ClinicalMind|
|Cumberland Pediatric Dentistry & Orthodontics||Dental||Rock Mountain Capital||Spark Orthodontics|
|Alizadeh & Schreiner Orthodontics||Dental||Shore Capital Partners||Southern Orthodontic Partners|
|Amazing Smiles Orthodontics||Dental||Shore Capital Partners||Southern Orthodontic Partners|
|Unger Orthodontics||Dental||Shore Capital Partners||Southern Orthodontic Partners|
|One Medical Passport||Telehealth||SSM Partners||Mnet Health Services|
|Wellframe||Telehealth||The Blackstone Group||HealthEdge|
|ExplORer Surgical||Health tech||Thoma Bravo, Temasek Holdings and Golub Capital BDC||Global Healthcare Exchange|
|CRAssociates||Health clinics||Trive Capital||Valor Healthcare|
|Hernando County Emergency Physician||Emergency services||Varsity Healthcare Partners and Regal Healthcare Capital Partners||Emergency Care Partners|
|Protean||Healthcare consulting||Water Street Healthcare Partners and JLL Partners||Eversana|
|National Health Rehabilitation||Rehabilitation||Webster Equity Partners||Integrated Rehab Consultants|
|Colorado Retina Associates||Eye care||Webster Equity Partners||Retina Consultants of America|
|Diagnostic Centers of America||Radiology||Wellspring Capital Management||Rayus Radiology|
|The Derm Group||Dermatology||Zenyth Partners, LNK Partners and LLR Partners||Schweiger Dermatology Group|
https://www.brident.com/en-us/about-us/news-room-videos/summit-dental-center-in-texas-joins-western-dental-and-brident ; https://www.westerndental.com/en-us/about-us
 Settlement: https://westerndentalsettlement.com/Portals/0/Document%20Files/2021.08.09%20Final%20Approval%20Order.pdf?ver=2021-08-10-083830-000 pg. 7.
 Settlement: https://www.govinfo.gov/content/pkg/USCOURTS-cand-3_19-cv-00612/pdf/USCOURTS-cand-3_19-cv-00612-1.pdf