Bain Capital On How Private Equity and Venture Capital Are Disrupting Hospitals and Health Systems
Aaron Newman from Cain Brothers released a short commentary about how private equity and venture capital are disrupting hospitals and health systems. According to Mr. Newman, there are four ways private equity and venture capital are fundamentally disrupting their business models: growth in Medicare Advantage, physician aggregation, delivery of care at lowest cost setting and disruption from non-traditional care providers. Going forward, hospitals and health systems must understand these disrupting forces and proactively assess strategic alternatives to fortify their market position. In September, we saw Aurelius Healthcare Sdn Bhd, backed by private equity firm Navis Capital... Read More »
PE-Backed Acorn Health Sold to Ontario Teachers’ Pension Plan
After launching Acorn Health in October 2018, MBF Healthcare Partners II, L.P. is selling the behavioral health platform in a new deal. The buyer is The Ontario Teachers’ Pension Plan Board (Ontario Teachers), the administrator of Canada’s largest single-profession pension plan. It pays pensions and invests plan assets on behalf of 331,000 retired and working teachers. No terms were disclosed. Acorn Health is an accredited national provider of high-quality applied behavior analysis (ABA) therapy to children with autism spectrum disorder. The company employs approximately 1,200 individuals, serves more than 1,300 families, and operates a network of 51 clinics across seven states, including... Read More »
Women’s Health USA Partners With Unified Women’s Healthcare
Private equity-backed Unified Women’s Healthcare has announced a new partnership with Women’s Health USA (WHUSA), a multi-state organization offering practice management and emerging value-based care services to more than 600 OB/GYN and women’s health providers. Sverica Capital Management, the current majority shareholder in WHUSA, will be selling its majority stake in this deal and will reinvest a portion of its proceeds into the combined company. No terms were disclosed, but the deal will create the largest physician practice management company dedicated solely to women in the United States. Together, WHUSA and Unified Women’s will provide comprehensive business services to more than... Read More »
Equity Consortium Takes Inovalon Private
A group of private equity buyers has announced an agreement to acquire Inovalon, taking the publicly traded digital health company private. The group is led by Nordic Capital and joined by Insight Partners as lead co-investor, with 22C Capital, Inovalon founder/Chief Executive Officer Keith Dunleavy and certain Class B stockholders of Inovalon joining in on the investment. The deal is valued at $7.3 billion in an all-cash transaction. Inovalon stockholders will receive $41.00 per share in cash for each share of Class A Common Stock or Class B Common Stock. The company provides cloud-based platforms empowering data-driven healthcare. Through the Inovalon ONE Platform, it brings a... Read More »