For the Physician Medical Group sector, this year is shaping up to rival 2016’s merger and acquisition activity. Two multi-billion-dollar deals have been announced, through the middle of August. Two such deals were announced in 2016, although they were for larger amounts.
So far in 2017, 104 transactions for physician practices have been made public, just 20% lower than the 2016 total of 130 deals. There’s still time to catch up to that recent high, obviously.
Spending is a different story, as usual. Through mid-August, nearly $5.5 billion has been committed to finance these doctor deals, which is 59% lower than the full-year total of $13.3 billion in 2016.
The latest major deal in this sector was announced August 16, as Ares Management L.P. (NYSE: ARES) acquired DuPage Medical Group for $1.45 billion. The deal marked Summit Partners’ exit as an investment partner in DuPage.
DuPage Medical Group is the largest independent, multi-specialty physician group with more than 600 physicians in more than 80 suburban Chicago locations. DuPage Medical Group handles upwards of 1.1 million patient visits annually, treating about a third of DuPage County’s population.
The deal will enable continued support for growth initiatives across the entire organization, including DMG’s practice management company, DMG Practice Management Solutions, and DMG’s subsidiary, Boncura Health Solutions.
DMG’s physician group, DuPage Medical Group Ltd., will remain 100% physician-owned-and-directed, and DMG physicians will retain a significant ownership stake in the practice management company. As part of its investment, Ares also acquired Summit Partners’ stake in DMG Practice Management Solutions.
