Apollo Medical Holdings, Inc. (OTCQB: AMEH), an integrated population health management company, announced a new acquisition last week. The group acquired Accountable Health Care for $7.25 million, an independent practice association (IPA) that operates a network with more than 450 primary and 700 specialty care physicians. They provide healthcare services to more than 91,000 members of federally qualified health plans and multiple product lines. Apollo Medical is acquiring the group through its affiliates, Allied Pacific of California and APC-LSMA Designated Shareholder Medical Corporation (APC-LSMA). APC-LSMA will own 75% and Allied Pacific of California will own 25% of all outstanding stock.
This isn’t Apollo Medical’s first acquisition in 2019. Back in June, the company bought Alpha Care Medical Group, Inc. for $45 million, another IPA in California. It is a risk-bearing organization engaged in providing professional services through a provider network of primary care and specialty care physicians. Alpha focuses on MediCal/Medicaid, commercial, Medicare and dual-eligible members. The purchase of Alpha Care comes after a three-year hiatus when the group bought Network Medical Management, Inc., a management services organization that offers coordinated care to more than 600,000 patients in California through a network of 10 independent practice associations with more than 2,000 contracted physicians. The merger created one of the largest population health companies in the United States.
Although IPAs don’t draw the same attention as dental groups or ophthalmology providers, they have been the focus of a few acquisitions in the past few years. In June, VillageMD acquired Memorial Clinical Associates in Houston, a full-service primary care health practice that provides staffing services to the Memorial, Katy and Spring Branch Communities, and its IPA business. That added 25 physicians to VillageMD’s network.
Employee Health Systems Medical Group acquired MultiCultural Medical Group, Inc. in 2017, an IPA with more than 370 providers serving 25,000 patients throughout Chula Vista, National City, La Mesa, El Cajon, City Heights, Mira Mesa and Poway, California.