Nearly halfway into 2019, and PE firms are showing no signs of slowing as they swarm the healthcare industry. So far this year, there have been 71 deals with a private equity firm as the buyer, or roughly 11% of the total deals announced. That’s roughly the same amount as in the same period in 2018.
In late May, Golden Gate Capital announced it purchased Ensemble Health Partners for a reported $1.2 billion from Bon Secours Mercy Health. The target company provides outsourced revenue cycle management (RCM) and operation solutions to hospitals across the country. It has more than 3,600 employees and partners with more than 60 hospitals in 30 states. Bon Secours bought the company in 2016 for $60 million, plus $40 million in payments for reaching financial milestones. They will continue as a commercial partner to Ensemble and remain a minority owner.
Bain Capital Double Impact Fund, L.P. added another physician practice group to its portfolio when it bought Rodeo Dental & Orthodontics, which provides dental services in Texas. No price was disclosed in that deal. WindRose Health Investors, LLC acquired Healthmap Solutions for $85 million.
The target is a specialty health management company focused on progressive diseases that work with clients such as Medicare Advantage and employer-sponsored plans, accountable care organizations and provider groups. Additionally, Amulet Capital Partners, LP bought three gastroenterology practices in Pennsylvania for $130,000,000. Amulet plans to merge the three practices, creating the seventh largest GI practice in the United States.