M&A Slows for Physician Medical Groups
The Physician Medical Group sector has posted blazing merger and acquisition activity in recent years. Annual deal volume in the sector hit 207 deals in 2017, followed by 253 deals in 2018 and 241 deals in 2019. Enter COVID-19 in 2020. Social distancing is the new norm. Hospitals have been forced to postpone elective surgeries for the foreseeable future, so they and their physician groups are losing much-needed revenue as COVID-19 cases flood emergency rooms and ICUs. Needless to say, many physician practices have had to postpone treatment and delay revenue as patients stay home. All around the country, practices are struggling to stay afloat. Needless to say, Physician Medical Group deals... Read More »
Retina Consultants of America Formed through PE-Backed Merger
And in one fell swoop, Webster Equity Partners has formed a major physician group. The private equity firm announced in early March that it is acquiring and merging Retina Consultants of Houston, Retina Group of Florida, Long Island Vitreoretinal Consultants, and Retinal Consultants Serving Northern California to form Retina Consultants of America (RCA). The platform has a $350 million investment to build on and will have EBITDA of $80 million and roughly 50 physicians, according to sources cited in PEHub. But tucked away in that price is a fifth transaction that we should hear about before the end of March. Further, Webster and RCA are planning to expand rapidly, adding more practices in... Read More » Physician Group Merger Creates Florida’s Largest Orthopaedic Provider
February was a modest month for Physician Medical Group deals. With seven on the books thus far (we expect more to pop up), it beat February 2019’s total by just one deal. However, M&A activity seems to be gaining steam in March, with a number of deals already announced, including two substantial physician groups down in Florida. This past week the Florida Orthopaedic Institute, backed and supported by MD Healthcare Partners, merged with OrthoCare Florida, a physician group with thirteen practices across Florida. The combined company will become the largest orthopedic provider in the state and the 13th largest in the country. The group will also include two orthopedic urgent care... Read More »
Banner Health Adds Two Physician Groups
Arizona’s Banner Health continues to beef up its physician roster. In February, the not-for-profit health system added Desert Vascular Specialists and The Orthopedic Clinic Association (TOCA). Banner Health owns and operates 28 acute-care hospitals in six states, as well as the Banner Health Network, Banner University Medicine, academic and employed physician groups, long-term care centers, outpatient surgery centers and an array of other services. Desert Vascular Specialists provides diagnostic and personal treatment strategies for its patients using both traditional vascular surgical and lesser invasive endovascular interventions. Desert Vascular Specialists and its two surgeons... Read More »
PE Firm Activity 2019 Results
Bain & Company’s recent Global Private Equity Report 2020 highlighted some slowdowns in investments across the board, writing that global buyouts from private equity (PE) firms dropped to 13% of M&A deal value in 2019, compared with 15% in the previous two years. A survey cited in the report stated that 57% of PE fund general partners interviewed think the economy has reached a cyclical peak, while 14% think it has already entered a recession. However, in the healthcare services industry, PE firms and their portfolio companies are more bullish, confident against signs of a recession and chatter about “Medicare for All” in the Democratic presidential primaries. * =... Read More »