The Physician Medical Group sector started off the year strong and hasn’t lost any momentum as physician groups continue seeking scale to survive. As of May 26, 2017, 77 deals have been announced. The largest disclosed deal was Optum’s (NYSE: UNH) $3.3 billion acquisition of Surgical Care Affiliates, Inc. (NASDAQ: SCAI) in January.

In May, the second largest deal of the year was announced. The acquirer, Surgery Partners (NASDAQ: SGRY), operates surgical facilities in the United States. Its target is National Surgical Healthcare,  a portfolio company of Irving Place Capital, for $760 million. National Surgical Healthcare owns and operates 21 surgical facilities in partnership with local physicians and specializes in orthopedic surgery, spine and back, pain management and neurosurgery.

In conjunction with this transaction, Bain Capital Private Equity will acquire H.I.G. Capital‘s existing equity stake in Surgery Partners. This transaction will create a diversified inpatient and outpatient surgical provider with a portfolio of 125 surgical facilities, 58 physician practice locations and complementary ancillary services. It will operate in 32 states with a network of more than 5,000 physicians.