Physician Medical Group M&A During COVID-19

Physician Medical Group M&A During COVID-19

by | Jun 8, 2020 3:33 pm | Physician Medical Groups

Things are tough for physician medical groups, there’s no doubt about that. Since March 18, 2020, when the Centers for Medicare & Medicaid Services recommended that all elective, nonessential medical, surgical and dental procedures be delayed for the duration of the pandemic, a major source of revenue for many practices, the M&A market has dwindled. May 2020 only had four transactions announced, one fifth of May 2019’s amount, according to our Deal Search Online database. A survey by The Medical Group Management Association revealed that physician groups reported a 55% decrease in revenue and 60% decrease in patient volume since the beginning of the crisis. Approximately 75% of... Read More »
Mednax Sells American Anesthesiology

Mednax Sells American Anesthesiology

by | May 11, 2020 4:26 pm | Physician Medical Groups

Deal making is getting more creative in the time of COVID-19. Mednax, Inc. (NYSE: MD) sold its anesthesiology group, American Anesthesiology, Inc., to North American Partners in Anesthesia (NAPA), a portfolio company of American Securities, for $50 million. In an 8k filing on May 6, Mednax added a few terms to that $50 million price. It retained the accounts receivable of American Anesthesiology, which, net of various other working capital items, which were approximately $110 million as of March 31, 2020. It also retained a contingent economic interest in the success of NAPA with a value ranging from $0 to $250 million based upon the multiple of invested capital returned to NAPA’s owners... Read More »

Another Anesthesia Group Changes Hands

by | Apr 21, 2016 8:00 am | Physician Medical Groups, Private Equity

Moelis Capital Partners is selling North American Partners in Anesthesia (NAPA), the largest single specialty anethesia management company in the United States, which it acquired in 2011. The buyers are American Securities LLC, a middle-market private equity firm, along with minority investments from Leonard Green & Partners and NAPA management. Specifically, the buyers completed a recapitalization of NAPA’s practice management company, NAPA Management Services Corporation. Financial terms were not disclosed, but Reuters News reported in February that American Securities was paying nearly $1 billion for NAPA. Read More »