Private Equity Health Care Acquisitions – October 2023
November 30, 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 October 2023. We will continue to track acquisitions on a monthly basis.
See September 2023 acquisitions here.
See all our 2022 acquisitions updates here.
In October 2023, the healthcare sector saw private equity firms make 81 deals in total: 12 buyouts (14.8%), 48 add-on acquisitions (59.3%), and 21 growth investments (25.9%), representing a sharp increase from the previous month.
October’s deals may represent a break in trends from prior months. The second quarter of 2023, according to PitchBook, saw the lowest number of deals since the second quarter of 2020.[1] Recently, PitchBook also found that the “pace of dealmaking in healthcare services fell again in Q3,” down 29 percent from the second quarter.[2]
October is also a notable increase from the previous month. In September 2023, there were 45 private equity deals in healthcare – 8 buyouts, 31 add-on acquisitions, and 6 growth investments.[3]
KKR add-ons in autism therapy and contract research
Private equity firm KKR purchased almost 40 autism therapy locations in October through its portfolio company BlueSprig Pediatrics. BlueSprig purchased Colorado-based Trumpet Behavioral Health from WindRose Investors, another private equity firm that acquired Trumpet in 2017.[4]
The acquisition comes on the heels of the bankruptcy of one of the largest autism therapy companies in the US (CARD – owned by PE firm Blackstone Group) and nationwide closures of PE-owned autism centers (Invo Healthcare – owned by Golden Gate Capital).[5]
A report from PESP in 2022 identified cost-cutting tactics at PE-owned youth behavioral health companies, such as cutting staff, relying on unlicensed staff, and failing to maintain facilities, which can lead to abuse, neglect, and unsafe living conditions for youth under the care of those companies.[6]
KKR also acquired research company Clinical Research Professionals in October through its portfolio company Headlands Research.[7]
KKR created Headlands in 2019 with plans for aggressive growth through acquisitions of smaller research sites.[8] Upon launching, Headlands acquired 6 clinical research sites.[9] As of November 2023, the company has 17 sites in the U.S. and Canada.[10]
Private equity firms have become increasingly drawn to clinical drug trials due to the large profits that can be gained through efficiencies, such as getting a drug to market sooner or for lower cost.[11]
As PESP pointed out in August, KKR’s recent acquisitions are concerning because of the firm’s history with other healthcare providers. KKR’s staffing firm Envision Healthcare, notorious for its use of surprise medical billing and lobbying against efforts to reign in the practice, filed for bankruptcy in May.[12] KKR-backed cancer treatment provider GenesisCare filed for bankruptcy in June.[13]
Health IT acquisitions continue
There were 7 Health IT acquisitions in October. Health IT describes software used by healthcare providers and payers. Healthcare IT includes technology to produce and track clinical data, claims data, and administrative data. Much healthcare IT investment has been focused on data cleaning, integration, and exchange.[14]
In early October, Canadian healthcare IT company LGI Healthcare Solutions acquired U.S.-based Boston Software Systems, which provides process automation for the healthcare industry. LGI is owned by private equity firm Novacap.[15] Novacap’s other healthcare portfolio companies include a medical imagining services company (Canada Diagnostic Centres) and a home healthcare provider (Spectrum Health Care).[16]
Also in October, contract research organization Veramed announced its acquisition of Boston-based data management company CTDS. Veramed is owned by private equity firm Livingbridge.[17] Livingbridge’s healthcare portfolio includes other health IT companies. In April 2023, it invested in a company providing AI-powered document services for the healthcare sector.[18]
According to one recent analysis, technology continues to be a key focus of private equity, “accounting for nearly one-third of PE activity by value” in the 12 months leading up to October 2023. Among the reasons for this amount of activity is investor interest in integration between technology and healthcare.[19]
A recent EY survey indicated that the Health IT sector is expected to continue growing, with emphasis on “data analytics, digitization, supply chain fragmentation, and the automation of critical processes,” among other areas for growth.[20]
Further consolidation of Durable Medical Equipment
Private equity firms made further inroads into the durable medical equipment (DME) industry. DME includes wheelchairs, respiratory technology, and other tools needed to manage chronic conditions and disabilities.
BPOC’s DME company, Home Care Delivered, acquired the DME unit of Medline Industries, a medical supplies giant owned by a consortium of private equity firms including Blackstone, Carlyle Group, and Hellman & Friedman.[21] Home Care Delivered specializes in supplies for diabetes/CGM, incontinence, wound, urological, and ostomy products.[22]
In addition, Nordic Capital-owned Sunrise Medical acquired Ride Designs, which manufactures seating systems for wheelchairs.[23]
Private equity firms have increasingly bought up DME manufacturers and suppliers and consolidated them. Through aggressive debt-funded growth strategies, a handful of private equity-owned DME companies have grown from nonexistence to industry giants over the last decade.[24]
See our latest report Private Equity in DME: How Private Equity Profits Off of Disabled and Chronically Ill Americans (November 2023).
Buyouts
Company |
Company Type |
Type 2 |
PE Firm(s) |
| ACU-Serve | Health IT | revenue cycle management | Lovell Minnick Partners |
| Akumin | Diagnostic services | diagnostic services | Stonepeak |
| Applied StemCell | Contract development and manufacturing organization | cell and gene therapy | QHP Capital |
| Cantata Health | Health IT | revenue cycle management | TT Capital Partners |
| Conquest Research | Clinical research | Reynolda Equity Partners | |
| Infirst Healthcare | Pharmaceuticals | Carlin Consumer Health | |
| Inphonite | Health IT | appointment reminder software | Big Band |
| Nue Life | Wellness | Beckley Waves | |
| Prescott Medical Communications Group | Healthcare consulting | NaviMed Capital | |
| Seoul Medical Group | Outpatient care | Ascend Partners, ACE & Company | |
| Thorne Research | Pharmaceuticals | L Catterton | |
| Viventium | Health IT | ABS Capital Partners |
Add-on acquisitions
Company |
Company Type |
Type 2 |
PE Firm(s) |
Add-on Platform |
| Advanced Biologics | Biotech | Thompson Street Capital Partners | Isto Biologics | |
| Albemarle Dermatology Associates | Outpatient care | dermatology | Gemini Investors, Hildred Capital Partners | DermCare Management |
| American Family Home Health | Home health | Athyrium Capital Management, Blue Wolf Capital Partners, Constitution Capital Partners, HarbourVest Partners, Kelso & Company | Elara Caring | |
| Arrowhead Forensics | Forensic products | Broad Sky Partners | Thomas Scientific | |
| AssuriCare | Health IT | home health claims management | TELEO Capital | CHCS Services |
| Avanos Medical (Respiratory Health Business) | Medtech | respiratory devices | A&M Capital, Dempsey Ventures, Frazier Healthcare Partners | AirLife |
| Boston Software Systems | Health IT | healthcare administration software | Novacap | LGI Healthcare Solutions |
| Brown’s Medical Imaging | Medtech | medical imaging equipment | Atlantic Street Capital | Prestige Medical Imaging |
| CAE Healthcare | Healthcare education | Sequoia Heritage, Barings | Madison Industries | |
| California Medical Evaluators | Medical-legal services | medical examination equipment and services | Aquiline Capital | MDpanel |
| California Medical Legal Specialists | Healthcare administration | forensic disability evaluations | Aquiline Capital | MDpanel |
| Charleston Allergy and Asthma | Outpatient care | healthcare administration software | B-FLEXION | Allergy Partners |
| Clinical Research Professionals | Clinical research | Kohlberg Kravis & Roberts | Headlands Research | |
| CTDS | Health IT | data management | Livingbridge | Veramed |
| Dahl-Chase Diagnostic Services | Laboratory services | anatomic and clinical pathology services | Sope Creek, Sweetwater Private Equity, Iron Path Capital, ACE & Company, BPEA Private Equity | Versant Diagnostics |
| Empowered Education | Health education | Tailwind Capital | International Sports Sciences Association | |
| Enovate Medical | Medtech | clinical workstations | The Sterling Group | Ergotron |
| Florida live healthy | Outpatient care | dental care | Linden Capital Partners | Sage Dental |
| Flume Health (Third Party Administrator Operations) | Health IT | healthcare administration software | BV Investment Partners | Vitori Health |
| Impact Research Institute | Clinical research | liver health research | GHO Capital | Velocity Clinical Research |
| Independence 4 Seniors | Home health | Havencrest Capital Management | Avid Health at Home | |
| Just Home Healthcare Services (Group Home and Independent Living Program Divisions) | Elder care | Blue Wolf Capital Partners, Leavitt Equity Partners, Juna Equity Partners, Constitution Equity Partners | RHA Health Services | |
| Med-Sell | Medical equipment | Shore Capital Partners, Dempsey Ventures | AA Medical Store | |
| Medline Industries (DMEPOS Supplier Business Unit) | Medical equipment | BPOC | Home Care Delivered | |
| Mountainside Wellness | Outpatient care | physical therapy | Hildred Capital Partners | SportsMed Physical Therapy |
| Netalytics | Health IT | healthcare administration software | GI Partners, TA Associates Management | Netsmart Technologies |
| Oasis Senior Advisors | Elder care | Growth Catalyst Partners | SilverAssist | |
| Omnicor Biomedical Services | Medical supplies | Gauge Capital | Equipment Management Service and Repair | |
| pCare | Health IT | patient engagement systems | Atlantic Street Capital, Enbridge Ventures, Ocean Avenue Capital Partners | Uniguest |
| Perkins Road Veterinary Hospital | Outpatient care | veterinary care | Shore Capital Partners | Southern Veterinary Partners |
| Pine Plains Veterinary Hospital | Outpatient care | veterinary care | Audax Private Equity, Ares Capital Corporation BDC, Ares Management, NB Capital Solutions | Veterinary Practice Partners |
| Pinnacle Surgery Center | Outpatient care | orthopedics | Chicago Pacific Founders | Trias MD |
| Procerus Skin Care | Outpatient care | spa and laser center | Incline Equity Partners | Cosmetic Skin & Laser Center |
| Quakertown Family Dental Center | Outpatient care | dental care | Regal Healthcare Capital Partners, The Jordan Company | Dental365 |
| RCxRules | Health IT | revenue cycle management | WestView Capital Partners, TA Associates Management, Abacus Finance Group | Alpha II |
| Ride Designs | Medical supplies | wheelchair seating | Nordic Capital, AlpInvest Partners | Sunrise Medical |
| South Padre Island Pediatric Center | Outpatient care | pediatric care | Webster Equity Partners | MyTown Health Partners |
| Tekyard | Medical supplies | preowned equipment | Shore Capital Partners, Dempsey Ventures | AA Medical Store |
| The Corridor Group | Healthcare consulting | revenue cycle management | Ardan Equity, Leonard Green & Partners | WellSky |
| True North Solutions (Cambridge) | Healthcare consulting | Great Point Partners | JPA Health | |
| Trumpet Behavioral Health | Behavioral health | autism services | Kohlberg Kravis & Roberts | BlueSprig Pediatrics |
| Urologic Specialists of Northwest Indiana | Outpatient care | urological services | Lee Equity Partners | Solaris Health |
| Urotronic | Medical devices | Patricia Industries | Laborie Medical Technologies | |
| Viatris (Over-the-Counter Drug Business) | Pharmaceuticals | Avista Capital Partners, Damier, CVC Capital Partners, Creafund, ESAS Holding | Coopération Pharmaceutique Française | |
| Virusys | Pharmaceuticals | Cinven, Omnes Capital, Astorg, Abu Dhabi Investment Authority | LGC | |
| Waldorf Center For Plastic Surgery | Outpatient care | cosmetic plastic surgical care | Partners Group, OMERS Private Equity | Forefront Dermatology |
| Wallcur | Health education | 1315 Capital, G Square Healthcare Private Equity | 3B Scientific | |
| Well Care Home Care (Home Care Business) | Home health | Havencrest Capital Management | Avid Health at Home |
Growth Investments*
*some investments have undisclosed investors
| Companies | Company Type | Type 2 | PE Firm(s) |
| BC Platforms | Health IT | data management | GrayBella Capital |
| BioProcure | Health IT | procurement software | Primus Capital |
| Bristol Hospice | Outpatient care | hospice and palliative care | Revelation Partners |
| Connections Health Solutions | Outpatient care | behavioral health | Heritage Group, Town Hall Ventures |
| CorroHealth | Health IT | reimbursement cycle tracking | TT Capital Partners |
| Edgewood Healthcare | Elder care | healthcare and hospital services | undisclosed |
| Eximia Research Network | Biotech | clinical trials | VSS Capital Partners |
| GBI | Biotech | undisclosed | |
| Hallmark Healthcare Solutions | Health IT | healthcare administration software | Summit Partners |
| Health Data Innovations | Health IT | data management | Hughes & Company |
| Institutes Of Health | Outpatient care | complex and chronic conditions | Latticework Capital Management |
| LabConnect | Laboratory services | ABS Capital Partners, Kline Hill Partners, Five Arrows Principal Investments | |
| LiveWell (Elder and Disabled Care) | Home health | BPEA Private Equity | |
| Lokavant | Laboratory services | Mitsui & Company | |
| PanTheryx | Pharmaceuticals | undisclosed | |
| Prendio | Health IT | procurement software | Primus Capital |
| Regent Surgical Health | Healthcare consulting | Martin Ventures | |
| S&S HealthCare Strategies | Healthcare administration | Lovell Minnick Partners | |
| SHINE Technologies | Pharmaceuticals | medical isotopes | Fidelity Management, Baillie Gifford |
| VetEvolve | Healthcare administration | veterinary practice management | Varsity Healthcare Partners |
| Xevant | Health IT | performance optimization software | undisclosed |
[1] PitchBook. “Q2 2023 Healthcare Services Report,” p. 3, August 11, 2023. https://pitchbook.com/news/reports/q2-2023-healthcare-services-report.
[2] PitchBook. “Q3 2023 Healthcare Services Report,” November 7, 2023. https://pitchbook.com/news/reports/q3-2023-healthcare-services-report.
[3] Bugbee, Mary. “Private Equity Health Care Acquisitions – September 2023.” Private Equity Stakeholder Project PESP (blog), October 17, 2022. https://pestakeholder.org/news/private-equity-healthcare-acquisitions-september-2023/
[4] Chris Larson. “KKR-Backed BlueSprig Rolls Up Trumpet Behavioral Health, Adds Nearly 40 Locations to Footprint.” Behavioral Health Business, October 18, 2023. https://bhbusiness.com/2023/10/18/kkr-backed-bluesprig-rolls-up-trumpet-behavioral-health-adds-nearly-40-locations-to-footprint/.
[5] Eileen O’Grady, “PE’s failed autism failed bets harm workers and consumers,” Private Equity Stakeholder Project, July 28, 2023. https://pestakeholder.org/news/pes-failed-autism-failed-bets-harm-workers-and-consumers/
[6] Eileen O’Grady. “The Kids Are Not Alright: How Private Equity Profits Off of Behavioral Health Services for Vulnerable and At-Risk Youth.” Private Equity Stakeholder Project PESP, February 17, 2022. https://pestakeholder.org/news/the-kids-are-not-alright-how-private-equity-profits-off-of-behavioral-health-services-for-vulnerable-and-at-risk-youth/.
[7] Clinical Research News Online. “Headlands Research Continues Accelerated Growth with the Acquisition of Clinical Research Professionals, Further Expanding Its Geographic Reach,” October 11, 2023. https://www.clinicalresearchnewsonline.com/news/2023/10/16/headlands-research-continues-accelerated-growth-with-the-acquisition-of-clinical-research-professionals-further-expanding-its-geographic-reach.
[8] Ron Leuty. “KKR-Backed Startup Headlands Research on Hunt to Buy Clinical Trial Sites.” San Francisco Business Times, November 13, 2019. https://headlandsresearch.com/wp-content/uploads/SFBT-11.13.19.pdf.
[9] Headlands Research. “Headlands Research Acquires Six Clinical Research Sites As It Seeks to Transform the Clinical Trial Process.” GlobeNewswire News Room, November 13, 2019. https://www.globenewswire.com/en/news-release/2019/11/13/1946378/0/en/Headlands-Research-Acquires-Six-Clinical-Research-Sites-As-It-Seeks-to-Transform-the-Clinical-Trial-Process.html.
[10] Headlands Research. “Headlands Sites.” Accessed November 13, 2023. https://headlandsresearch.com/headlands-sites/.
[11] Rachana Pradhan. “The Business of Clinical Trials Is Booming. Private Equity Has Taken Notice.” Fortune, December 2, 2022. https://fortune.com/2022/12/02/clinical-trials-private-equity-headlands-research/.
[12] Mary Bugbee, “It Should Come as No Surprise That KKR-Owned Envision Healthcare Has Finally Declared Bankruptcy,” Private Equity Stakeholder Project (blog), June 6, 2023, https://pestakeholder.org/news/it-should-come-as-no-surprise-that-kkr-owned-envision-healthcare-has-finally-declared-bankruptcy/.
[13] Becky Yerak, “KKR-Backed Cancer-Treatment Provider GenesisCare Files for Bankruptcy,” Wall Street Journal, June 1, 2023, sec. WSJ Pro, https://www.wsj.com/articles/kkr-backed-cancer-treatment-provider-genesiscare-files-for-bankruptcy-953132cf.
[14] PitchBook. “Q4 2022 Launch Report: Healthcare IT,” March 2, 2023. https://pitchbook.com/news/reports/q4-2022-launch-report-healthcare-it.
[15] Novacap. “LGI Healthcare Solutions Acquires Boston Software Systems – Novacap,” October 5, 2023. https://novacap.ca/news/template-14/.
[16] Novacap. “Portfolio – Novacap.” Accessed November 13, 2023. https://novacap.ca/portfolio/.
[17] Livingbridge. “Veramed Expands Its Global Footprint by Acquiring Data Management, Biometrics and Medical Writing Services Company Clinical Trial Data Services (CTDS),” October 9, 2023. https://www.livingbridge.com/livingroom/veramed-expands-its-global-footprint-by-acquiring-data-management-biometrics-and-medical-writing-services-company-clinical-trial-data-services-ctds.
[18] Livingbridge. “Livingbridge Announces Investment in Clinical Document Workflow Software T-Pro,” April 28, 2023. https://www.livingbridge.com/livingroom/livingbridge-announces-investment-in-clinical-document-workflow-software-t-pro.
[19] Pete Witte. “Private Equity Pulse: Five Takeaways from Q3 2023.” EY, October 25, 2023. https://www.ey.com/en_us/private-equity/pulse.
[20] Pete Witte. “Private Equity Pulse: Five Takeaways from Q3 2023.” EY, October 25, 2023. https://www.ey.com/en_us/private-equity/pulse.
[21] “Home Care Delivered, Inc. Completes Acquisition of Medline Industries, LP’s DMEPOS Supplier Business Unit,” BPOC, October 16, 2023/ https://www.bpoc.com/news/Home-Care-Delivered-Inc-Completes-Acquisition-of-Medline-Industries-LPs-DMEPOS-Supplier-Business-Unit
[22] “Home Care Delivered, Inc. Completes Acquisition of Medline Industries, LP’s DMEPOS Supplier Business Unit,” BPOC, October 16, 2023/ https://www.bpoc.com/news/Home-Care-Delivered-Inc-Completes-Acquisition-of-Medline-Industries-LPs-DMEPOS-Supplier-Business-Unit
[23]https://www.nordiccapital.com/news-views/press-releases/nordic-capital-backed-sunrise-medical-completes-strategic-acquisition-of-ride-designs/
[24] Eileen O’Grady, “Private Equity in DME: How Private Equity Profits Off of Disabled and Chronically Ill Americans,” November 2023. https://pestakeholder.org/news/private-equity-stranglehold-on-medical-equipment-industry-hurts-people-with-disabilities/
