Transactions in the physician medical group (PMG) acquisition market increased in the fourth quarter of 2015, jumping by more than 15% from the third quarter’s activity. The 22 publicly announced physician medical group acquisitions were also 29% higher than the transaction volume in the year-ago fourth quarter.
Only one acquisition in the fourth quarter of 2015 came with a disclosed price, and that was the acquisition of Questcare Medical Services by Envision Healthcare Holdings, Inc. for $135.0 million. Based in Dallas, Texas, Questcare Medical has more than 800 clinical providers at 50 facilities in Texas, Oklahoma and Colorado with annual revenues of approximately $160 million.
With 88 announced acquisitions in the PMG sector for the full year, 2015 posted a 46.7% increase over 2014 in number of announced physician medical group acquisitions. This market is expected to remain active with consolidation among the medical groups and continued acquisition interest from large hospitals and health systems for the primary medical groups.
