PE Firms Move the Needle in the Rehab Market
It’s been a quiet year in the Rehabilitation M&A market, at least through October. There have been 27 deals announced that targeted rehabilitation facilities only, a decline of 37% compared with the 43 deals announced in the full year of 2018. True, that’s 10 months in 2019 versus all 12 in 2018, but we’re not expecting a rash of deal announcements between now and December 31. Activity in this sector has been dropping since its peak in 2017, with 49 transactions. Onc factor may be the October 1 launch of the CMS’ new rule, the Patient Driven Payment Model (PDPM), which changes reimbursement and regulations on rehabilitation in skilled nursing facilities and... Read More »
Outpatient Rehab Platform Adds On
Another rehabilitation platform made an add-on acquisition. Lima, Ohio-based CORA Health Services, a portfolio company of Gryphon Investors, announced its acquisition of Orthopedic and Sports Therapy Institute (OSTI) in Rockford, Illinois. CORA has more than 100 clinics in Florida, Georgia, Michigan, North and South Carolina, Tennessee and Virginia. OSTI offers a wide variety of services, including general physical therapy and specialty programs in balance and fall prevention, golf therapy, oncology rehabilitation, pain management and more. Its clinics are located in Rockford, Belvidere, Marengo, Ogle County, Poplar Grove and Sauk Valley. Gryphon acquired CORA in June 2016. It made its... Read More »
Ante Up: Private Equity Firms Bet Big on Physician Medical Groups
In the first half of 2019, there were 72 physician medical group deals announced, and approximately 63% of those involved private equity firms as the buyer, according to our Deal Search Online database. And some were major deals too. Early in June, we reported that West Street Capital Partners VII, the private equity arm of Goldman Sachs (NYSE: GS), acquired Capital Vision Services LP for $2.7 billion from Altas Partners LP and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ). If Capital Vision Services LP doesn’t ring a bell, that’s because they operate under the trade name MyEyeDr. The target company employs approximately 560 optometrists and... Read More »
Autism Therapy Provider Hopebridge Changes Hands Again
Autism treatment companies are still hot targets in 2019. Eight transactions have been announced so far this year, compared with 20 in all of 2018. (That was an outsized year for every healthcare sector. There were nine deals for autism targets in 2017.) Private equity firms are trading platforms in this sub-sector. Just this year, Gryphon Investors bought Learn Behavioral from LLR Partners for an undisclosed amount. Now there’s the deal between Baird Capital and Arsenal Capital Partners for Hopebridge LLC. Hopebridge LLC was launched in 2005 in Indianapolis, Indiana to serve the growing need for autism treatment services. The clinic-based autism therapy business provides Applied... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
