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Private Equity Stays Active in Health Care

Private Equity Stays Active in Health Care

Nearly halfway into 2019, and PE firms are showing no signs of slowing as they swarm the healthcare industry. So far this year, there have been 71 deals with a private equity firm as the buyer, or roughly 11% of the total deals announced. That’s roughly the same amount as in the same period in 2018. In late May, Golden Gate Capital announced it purchased Ensemble Health Partners for a reported $1.2 billion from Bon Secours Mercy Health. The target company provides outsourced revenue cycle management (RCM) and operation solutions to hospitals across the country. It has more than 3,600 employees and partners with more than 60 hospitals in 30 states. Bon Secours bought the company in... Read More »
Autism Therapy Provider Hopebridge Changes Hands Again

Autism Therapy Provider Hopebridge Changes Hands Again

Autism treatment companies are still hot targets in 2019. Eight transactions have been announced so far this year, compared with 20 in all of 2018. (That was an outsized year for every healthcare sector. There were nine deals for autism targets in 2017.) Private equity firms are trading platforms in this sub-sector. Just this year, Gryphon Investors bought Learn Behavioral from LLR Partners for an undisclosed amount. Now there’s the deal between Baird Capital and Arsenal Capital Partners for Hopebridge LLC. Hopebridge LLC was launched in 2005 in Indianapolis, Indiana to serve the growing need for autism treatment services. The clinic-based autism therapy business provides Applied... Read More »
Oak Hill Capital Exits AccentCare

Oak Hill Capital Exits AccentCare

May has been a busy month for deals in the Home Health & Hospice sector with eight transactions announced midway through the month. The latest is Oak Hill Capital Partners’ sale of its post-acute care platform, AccentCare, Inc. to Advent International. Financial terms were not disclosed. Today, AccentCare is the sixth largest home health platform and the third largest personal care platform in the United States. It serves health systems, physician practices and managed care organizations, and includes strategic joint ventures and partnerships. Its range of services includes personal, non-medical care to skilled nursing, rehabilitation, hospice care and care management. Oak Hill... Read More »
Telehealth: Answering the Call

Telehealth: Answering the Call

If you’ve attended any healthcare deal-making conference in the last few years, you’ve heard that telehealth is one of the hottest target sectors going, right up there with autism services and physician practices (dermatologists, ophthalmologists, dentists, you name it). It’s caught in something of a perfect storm at the moment, as more states and regions implement laws to facilitate telehealth services. On the federal level, the Centers for Medicare and Medicaid Services on April 5, 2019 finalized policies that increase plan choices and benefits, including allowing Medicare Advantage plans to include additional telehealth benefits. Private health insurers have been offering telehealth... Read More »
Private Equity Stays Active in Health Care

PE Firms Growing Influence in eHealth

In our 2019 Health Care Services Acquisition Report, Twenty-Fifth Edition, we reported how private equity firms have reshaped healthcare M&A on the services side. However, PE firms and their portfolio companies are also molding the tech sector, particularly in eHealth. In 2017, private equity firms and their portfolio companies accounted for roughly 29% of the 164 digital health deals. In 2018, they accounted for 67 deals, or nearly 33% of the 204 deals reported. Their activity is increasing in both number and volume. In terms of spending volume, private equity firms and portfolio companies accounted for 40% of announced prices for 2017 at roughly $3.69 billion. In 2018, it was nearly... Read More »
How PE Firms and Sponsored Companies Have Reshaped Health Care M&A

How PE Firms and Sponsored Companies Have Reshaped Health Care M&A

Although private equity firms have been active in healthcare services for many years, their participation has grown significantly in the past five. In our newly published report, 2019 Health Care Services Acquisition Report, Twenty-Fifth Edition, we took a look at their recent activities and how they’re moving these markets. Deal volume created by these firms and their portfolio companies grew 450% between 2014 and 2018, reaching 369 transactions in 2018. PE firms’ share of the combined annual deal count in healthcare services increased to 46% in 2018, from just 14% five years earlier. The data below does not include the Long-Term Care sector. Spending by these firms and their... Read More »