Physician Practice Deals Are Set for New Record
Private equity firms can’t get enough of physician medical gropus, especially the specialty practices. In the first eight months of 2018, 153 deals have been announced in this sector. With four months left to go, there’s plenty of time to top last year’s total of 168 transactions. Private equity firms made 21 direct acquisitions this year, about 14% of the 153 announced deals. Companies owned by private equity firms accounted for 51% of the total. You can bet that, if private equity-sponsored deals made up 65% of the year’s total, valuations are going through the roof. And you’d be right. Sources tell us that the fevered-pitch interest in specialty physician... Read More »The MACRA Effect Keeps Building
Last year, the Centers for Medicare and Medicaid Services asked for comments and then rolled out the final rules on the implementation of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). Many industry observers predicted the rules would drive the majority of independent physician practices “right into the arms” of a local hospital, health system or other entity. Those predictions appear to be true. As of mid-March 2017, 46 acquisitions of physician practices have been announced, a 105% increase from the same period a year ago. Only one of the deals disclosed a price, Optum’s (NYSE: UNH) $3.3 billion acquisition of Surgical Care Affiliates Inc. (NASDAQ:... Read More »PE Firms Flock to Dermatology Deals
Dermatology practices remain high on the list of healthcare sectors for private equity investors. Through mid-March, 2017, 12 deals targeting these practices have been announced by eight acquirers. All those acquirers are either private equity firms, or portfolio companies. Thanks to the private nature of these transactions, no financial terms have been publicly disclosed. Of the 17 dermatology deals announced in 2016, six acquirers were private equity firms and five were portfolio companies. Some big deals (even without disclosing prices) announced last year include Harvest Partners’ acquisition of Advanced Dermatology and Cosmetic Surgery from Audax Group, in May... Read More »Sterling Partners Expands into Ophthalmology
Sterling Partners, a Chicago-based private equity firm, added the first ophthalmology practice to its healthcare services portfolio with the acquisition of Grand Rapids Ophthalmology. GRO is the first eye care provider to join Great Lakes Management Services Organization, a practice management services organization formed by Sterling to support GRO’s local expansion and larger-scale growth. GRO offers a full suite of eye care services including optometry, retail optical, oculoplastics, cataract surgery and retinal sub-specialties. It employs 11 ophthalmologists and 18 optometrists in 11 locations. Sterling Partners has been busy building up platforms in other areas of healthcare services,... Read More »Schedule a demo
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