The first quarter of 2018 is nearly over (one week left to go), and the Physician Medical Group sector is still in acquisition mode. Last year, the first quarter saw a record 59 deals announced for physician groups. This year’s Q1 total won’t challenge that, but the 30 deals reported so far show interest isn’t waning for buyers or sellers.
We’ve written extensively about private equity groups building platforms of specialty practices, particularly dermatology, anesthesia and ophthalmology. But publicly traded entities are still in the hunt.
In the first three weeks of March 2018, 13 deals for physician practices were announced, although none disclosed financial terms. None of the acquirers announced two deals.
Among the publicly traded companies moving in this space:
Centene Corporation (NYSE: CNC), a managed care organization specializing in programs and services to under-insured and uninsured individuals, announced its acquisition of Community Medical Holdings Corp. in North Miami, Florida. Community Medical Holdings is a leading, at-risk primary care provider, serving more than 70,000 Medicaid, Medicare Advantage and Health Insurance Marketplace program patients.
CRH Medical Corporation (NYSE: CRH), the British Columbia-based company that supports gastrointestinal anesthesiology practices, added Shreveport Sedation Associates in Louisiana.
Envision Healthcare Corporation (NYSE: EVHC), which is under pressure by an activitst investor to entertain acquisition discussions, picked up the 15-physician Chandler Radiology Associates in that eponymous Arizona town.
Mednax, Inc. (NYSE: MD) added to its foundational pediatric practice, but with a twist. Children’s Eye Care in Kirkland, Washington is a pediatric ophthalmology practice that employs two ophthalmologists, one optometrist and eight non-clinical associates. It provides pediatric eye care, full surgical services and retinopathy of prematurity evaluation and treatment. It operates a single office location and serves four regional hospitals.
Private equity-backed acquirers included Unifeye Vision Partners (Waud Capital), EyeSouth Partners (Shore Capital), and Strategic Health Services (MBF Healthcare Partners).
You can check out all the Q1:18 deals in our Healthcare M&A Report, First Quarter 2018 when it’s published later in April.