Lee Equity Partners Forms New Urology Group
Lee Equity Partners (LEP) announced on June 17 the acquisition of Integrated Medical Professionals (IMP) and The Urology Group (TUG) to form Solaris Health, a management services organization. According to the release from LEP, it will be one of the nation’s largest providers of urological and other specialty services. LEP plans to use Solaris Health as the foundation for a national platform that attracts leading independent urological partners. For the two practices, LEP spent roughly $240 million, according to sources cited in PE HUB. TUG and IMP have combined estimated revenue of $270 million and $25 million in EBITDA. IMP is a urology-centric multi-specialty practice with 81... Read More » CRH Medical Adds Two New Physician Groups
After a brief hiatus from the healthcare M&A market, CRH Medical Corporation (NYSE: CRHM) added two new Georgia-based physician groups to its network in early June. CRH, based in Vancouver, Canada, provides physicians with innovative services and products for the treatment of gastrointestinal diseases. The company acquired Oconee River Anesthesia Associates and Lake Lanier Anesthesia Associates. Lake Lanier provides anesthesia services to two ambulatory surgery centers, and the group generates an estimated annual revenue of $2.7 million. The acquisition for Lake Lanier was financed through a combination of CRH’s credit facility and cash on hand and is EBITDA and cash flow... Read More »
Physician Medical Group M&A During COVID-19
Things are tough for physician medical groups, there’s no doubt about that. Since March 18, 2020, when the Centers for Medicare & Medicaid Services recommended that all elective, nonessential medical, surgical and dental procedures be delayed for the duration of the pandemic, a major source of revenue for many practices, the M&A market has dwindled. May 2020 only had four transactions announced, one fifth of May 2019’s amount, according to our Deal Search Online database. A survey by The Medical Group Management Association revealed that physician groups reported a 55% decrease in revenue and 60% decrease in patient volume since the beginning of the crisis. Approximately 75% of... Read More »
Mednax Sells American Anesthesiology
Deal making is getting more creative in the time of COVID-19. Mednax, Inc. (NYSE: MD) sold its anesthesiology group, American Anesthesiology, Inc., to North American Partners in Anesthesia (NAPA), a portfolio company of American Securities, for $50 million. In an 8k filing on May 6, Mednax added a few terms to that $50 million price. It retained the accounts receivable of American Anesthesiology, which, net of various other working capital items, which were approximately $110 million as of March 31, 2020. It also retained a contingent economic interest in the success of NAPA with a value ranging from $0 to $250 million based upon the multiple of invested capital returned to NAPA’s owners... Read More »
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 »