Physician Group Merger Creates Florida’s Largest Orthopaedic Provider

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

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

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 »
Hot Healthcare Sectors for Investment, Growth & Consolidation in 2020

Hot Healthcare Sectors for Investment, Growth & Consolidation in 2020

Every year, starting in November, the crystal balls come out and the prognostications begin. What will the new year bring? Who or what will make out better and who or what will not? We talked with Gary Herschman, a member of Epstein Becker Green’s Healthcare and Life Sciences practice, about the healthcare sectors he and his firm are watching in 2020. Here are their predictions for 2020. Health Care M&A: What do you see as the biggest themes in the healthcare industry this year? There are a lot of moving parts, from the discovery of new drugs to the shifting attention to post-acute care. Gary Herschman: We see three key “drivers” of health industry transformation that are already... Read More »
2019’s Biggest Healthcare Deals, by Sector

2019’s Biggest Healthcare Deals, by Sector

2020 has just begun, which means it’s time to look back at the healthcare M&A landscape of 2019. Just three days into the new year, nearly 1,780 deals are already on the books for 2019. More deals will turn up as we search our many sources, but the number likely won’t top the record of 1,900-plus set in 2018. Thanks to the multi-billion-dollar deals announced in the Biotech and Pharmaceutical sectors, 2019 will set a new spending record. Preliminary data show $399.1 billion was spent on healthcare acquisitions last year, about 20% higher than in 2018. We expect that number to rise as we go through the year and the 10Ks and quarterly reports come out. It’s possible the... Read More »

Private Equity Stormed PMG Sector in 2019

Even with just our preliminary data, private equity dominated dealmaking in the Physician Medical Groups (PMG) sector in 2019. According to our Deal Search Online database, PE firms and their portfolio companies (PE Buyers) accounted for roughly 71% of M&A activity in the sector, or 152 deals. And although we found dealmaking in nearly every specialty, from OB/GYN to radiology, it was heavily concentrated in three particular fields: dermatology, dental, and ophthalmology. Source: HealthcareMandA.com, December 2019 There were 49 deals focused on ophthalmology practices in 2019, a significant jump over every other specialty, and it was a select group of buyers driving the deal volume.... Read More »