Private Equity Health Care Acquisitions – February 2022
March 14, 2022
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 February 2022. We will continue to track acquisitions on a monthly basis.
See January 2022 acquisitions here.
Private equity firms are continuing to invest in physicians’ practices and medical groups, including gastroenterology, dermatology, orthopedics, and podiatry. The acquisitions are part of a growing trend of private equity firms buying up medical practices.
A 2020 study published in JAMA found that private equity firms acquired 355 physician practices between 2013 and 2016, with the number of deals accelerating each year. The most commonly represented medical groups in the study were anesthesiology (19.4%), multispecialty (19.4%), emergency medicine (12.1%), family practice (11.0%), and dermatology (9.9%). There were also increases in the number of cardiology, ophthalmology, radiology, and obstetrics/gynecology practices.[1]
Because private equity firms are barred from directly owning physicians’ practices in most states, firms often buy or create platform companies that partner with physician-owned medical groups. These physician management companies (PMC) typically manage the business administration of medical practices, including insurance contracting and billing.[2]
PE Physicians’ Practice Acquisitions – February 2022
Company | Type | PE Firm(s) | Add-on Platform |
Alteon Health | Practice management | Apollo Global Management, TowerBrook Capital Partners | US Acute Care Solutions |
Pivot Health Solutions | Physical therapy | BDT Capital Partners | Athletico Physical Therapy |
Southern Orthopaedic Surgeons (Montgomery) | Orthopedics | FFL Partners, Thurston Group | Mississippi Sports Medicine and Orthopaedic Center |
Alliant Physical Therapy Group | Physical therapy | H.I.G. Capital | CORA Health Services |
Middlesex Orthopedic Surgeons | Orthopedics | Kohlberg & Company | Orthopaedic & Neurosurgery Specialists |
Orthopaedic Surgical Associates | Orthopedics | Kohlberg & Company | Orthopaedic & Neurosurgery Specialists |
Epiphany Dermatology | Dermatology | Leonard Green & Partners | |
Reston Podiatry Associates | Podiatry | New MainStream Capital | Foot & Ankle Specialists of the Mid-Atlantic |
Caravan Health | Practice management | New Mountain Capital | Signify Health |
Digestive Health Specialists | Gastroenterology | OMERS Private Equity | Gastro Health |
Greater Boston Gastroenterology | Gastroenterology | OMERS Private Equity | Gastro Health |
Middlesex Gastroenterology | Gastroenterology | OMERS Private Equity | Gastro Health |
Forefront Dermatology | Dermatology | OMERS Private Equity, Partners Group | n/a |
Of critical concern is the impact of private equity ownership of physicians’ practices on the prices. A February 2022 study published in JAMA found that payments to anesthesia providers were higher at practices that contracted with a PMC, particularly if the PMC was backed by a private equity firm.[3]
The study found that for patients who received anesthesia in a facility with a PMC contract, amounts paid increased by 16.5%, and unit prices standardized by procedure complexity and duration climbed by 18.7%. For private-equity-owned PMCs, allowed amounts and unit prices increased by 26.0% and 25.6% respectively.[4]
The study author, Ambar La Forgia, told Healthcare Dive: “One way PMCs may command higher prices is by amassing market share and by developing better negotiating expertise. PE-backed PMCs may also have had stronger incentives to create short-term returns for investors relative to those without PE investments.”[5]
The study raises concern that private equity ownership of physician practice management companies may lead to increased prices and higher premiums.
February 2022 PE Buyouts
Company | Type | PE Firm(s) |
EVERSANA | Clinical trials and consulting | ACE & Company |
IntriCon | Medical supplies | Altaris Capital Partners |
Probo Medical | Medical devices | Avista Capital Partners |
Thomas Scientific | Medical supplies | Broad Sky Partners |
Agency for Medical Innovations | Medical supplies | Evoco |
Garramone | Plastic surgery | Hidden Harbor Capital Partners |
Epiphany Dermatology | Dermatology | Leonard Green & Partners |
Medical Knowledge Group | Pharmaceutical marketing | Novo Holdings |
Forefront Dermatology | Dermatology | OMERS Private Equity, Partners Group |
SOC Telemed (NAS: TLMD) | Telehealth | Patient Square Capital |
Us Mobile Health Exams | Health exams | Potomac Equity Partners |
American Outcomes Management | Home health, infusion | Ridgemont Equity Partners |
Clario (Drug Safety and Pharmacovigilance Services Solutions) | Pharmaceuticals | Stanley Capital |
Blue Cloud Pediatric Surgery Centers | Dental | The Rise Fund |
Oceans Healthcare | Behavioral health | Webster Equity Partners |
February 2022 PE Add-On Acquisitions
Company | Type | PE Firm(s) | Add-on Platform |
Viatris (Biosimilar Business) | Pharmaceuticals | ADQ, Tata Capital, The Goldman Sachs Group, True North | Biocon Biologics |
Analytical Wizards | Health tech | Advent International, Spectrum Equity | Definitive Healthcare |
Alteon Health | Practice management | Apollo Global Management, TowerBrook Capital Partners | US Acute Care Solutions |
National Billing Partners | Revenue cycle management | Aquiline Capital Partners | National Medical Billing Services |
TapCloud | Health tech | Ardan Equity, Leonard Green & Partners and TPG | Wellsky |
Med Express Ambulance Service | Emergency services | Ardian, Koch Equity Development, Kohlberg Kravis Roberts | Global Medical Response |
Conduent (Midas Health Analytics Solutions) | Health tech | Ares Management, Charlesbank Capital Partners, Clearlake Capital Group, SkyKnight Capital | Symplr |
Tryl | Clinical trials, health tech | Ballast Point Ventures, Flexpoint Ford | YPrime |
Pivot Health Solutions | Physical therapy | BDT Capital Partners | Athletico Physical Therapy |
Mahajan Therapeutics | Behavioral health | BPEA Private Equity, Webster Equity Partners | BayMark Health Services |
SIEHT | Eye care | Centre Partners | Vision Innovation Partners |
PELITAS | Revenue cycle management | Clearlake Capital Group | nThrive |
Premier Care Associates | Medicare Advantage plan provider | Crestline Investors | Genuine Health Group |
Tangible Solutions 3D | Medical devices | Dentressangle, Florac | Marle |
Audacious Inquiry | Health tech | Dragoneer Investment Group, Hellman & Friedman, JMI Equity, Pohlad Companies and Tao Capital Partners | PointClickCare |
Arranta Bio | Biotech | EQT, Ardian Equity | Recipharm |
Southern Orthopaedic Surgeons (Montgomery) | Orthopedics | FFL Partners, Thurston Group | Mississippi Sports Medicine and Orthopaedic Center |
TrierHealth | Clinical trials | GHO Capital | Velocity Clinical Research |
Syft | Health tech | Golub Capital BDC, Temasek Holdings, Warburg Pincus | Global Healthcare Exchange |
Alliant Physical Therapy Group | Physical therapy | H.I.G. Capital | CORA Health Services |
Middlesex Orthopedic Surgeons | Orthopedics | Kohlberg & Company | Orthopaedic & Neurosurgery Specialists |
Orthopaedic Surgical Associates | Orthopedics | Kohlberg & Company | Orthopaedic & Neurosurgery Specialists |
FlowMetric | Contract research organiztion | Konza Valley Capital, Vitruvian Partners | KCAS Bioanalytical & Biomarker Services |
Walton Eye Care | Eye care | Leon Capital Group | Physician Directed Partners |
Humanscale Healthcare | Medical devices | Levine Leichtman Capital Partners | Capsa |
Medical Purchasing Solutions | Pharmaceuticals | Linden Capital Partners, The Jordan Company | Young Innovations |
Reston Podiatry Associates | Podiatry | New MainStream Capital | Foot & Ankle Specialists of the Mid-Atlantic |
Caravan Health | Practice management | New Mountain Capital | Signify Health |
Digestive Health Specialists | Gastroenterology | OMERS Private Equity | Gastro Health |
Greater Boston Gastroenterology | Gastroenterology | OMERS Private Equity | Gastro Health |
Middlesex Gastroenterology | Gastroenterology | OMERS Private Equity | Gastro Health |
MediCopy Services | Medical IT services | Parthenon Capital Partners | MRO |
Resilience Treatment Center | Behavioral health | Regal Healthcare Capital Partners | Lightfully Behavioral Health |
Klara (Enterprise Systems) | Telehealth | Warburg Pincus | Modernizing Medicine |
CTSdatabase | Clinical trials | Webster Equity Partners | JBR Clinical Research |
February 2022 PE De Novo Acquisitions
Company | Type | PE Firm(s) | Add-on Platform |
Five NC ABA centers | Behavioral health | Arsenal Capital Partners | Hopebridge Autism Therapy Centers |
Overland Park, KS business | Hospice | H.I.G. Capital | St. Croix Hospice |
St. Croix South Dakota Business | Hospice | H.I.G. Capital | St. Croix Hospice |
[1]https://jamanetwork.com/journals/jama/article-abstract/2761076
[2]https://ldi.upenn.edu/our-work/research-updates/private-equity-investment-in-physician-practices/
[3]https://jamanetwork.com/journals/jamainternalmedicine/article-abstract/2789280
[4]https://jamanetwork.com/journals/jamainternalmedicine/article-abstract/2789280
[5]https://www.healthcaredive.com/news/corporate-backed-anesthesiology-practices-paid-more/619665/