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A Growing Trend: Health Systems Collaborating with Private Equity

A Growing Trend: Health Systems Collaborating with Private Equity

Are traditional health systems and private equity-backed groups natural competitors? Maybe not. Levin Associates’ proprietary deal database, which tracks mergers and acquisitions in real time, shows the fast pace at which both sides have been consolidating the medical marketplace over the past decade. The data also shows a new trend taking hold: Rather than competing against each other, health systems and PE firms are forming partnerships. Many experts in the healthcare industry anticipate this trend is here to stay. Levin Associates attended AHLA’s Health Care Transactions Conference on April 17-19, 2023, and the insights shared below are from panel discussions our writer observed in... Read More »
​​VSS Capital Partners invests in Olympus Cosmetic Group

​​VSS Capital Partners invests in Olympus Cosmetic Group

VSS Capital Partners announced that it invested in Olympus Cosmetic Group. Financial terms of the private transaction were not disclosed. Olympus Cosmetic Group provides comprehensive cosmetic surgery, dermatological treatments and non-surgical cosmetic procedures. The company is structured as a management services organization. Headquartered in Jacksonville, Florida, Olympus’ doctors provide a complete range of facelift, abdominoplasty, breast augmentation, breast lift, liposuction, injectables, non-surgical aesthetic treatments and body contouring, among others, from state-of-the-art facilities. VSS is a private investment firm that invests in the healthcare, information, business... Read More »
Avanos Medical Announces Agreement to Acquire Diros Technology

Avanos Medical Announces Agreement to Acquire Diros Technology

Avanos Medical, Inc. announced that it has entered into a definitive agreement to acquire Diros Technology Inc. in Markham, Canada. Diros Technology Inc. is a leading manufacturer of innovative radiofrequency products used to treat chronic pain conditions. Avanos Medical, Inc. is a medical technology company focused on delivering clinically superior breakthrough medical device solutions to improve patients’ quality of life. Headquartered in Alpharetta, Georgia, Avanos is committed to addressing some of today’s most important healthcare needs, such as reducing the use of opioids while helping patients move from surgery to recovery. Avanos develops, manufactures and markets its... Read More »
Vivo Infusion Acquires Specialty Infusion

Vivo Infusion Acquires Specialty Infusion

Vivo Infusion announced on June 20 that it has acquired Specialty Infusion for an undisclosed price. With this acquisition, Vivo Infusion will operate 55 ambulatory infusion centers across ten states. Founded in 2018, Specialty Infusion provides ambulatory infusion and specialty pharmacy services at 14 ambulatory infusion centers in New York, Massachusetts and New Jersey. Vivo Infusion is a provider of infusion and injection care for patients suffering from compromised immune systems, infectious diseases and other medical conditions. Vivo serves communities in Colorado, Florida, Ohio, Oklahoma, Pennsylvania, New Jersey and Texas with plans to expand to additional states. Private equity... Read More »
The Rise Funds: TPG’s Impressive Investment Vehicle

The Rise Funds: TPG’s Impressive Investment Vehicle

TPG (NASDAQ: TPG) has been incredibly active these last few months. As a global asset management firm with more than $137 billion of assets under management, TPG operates out of 14 offices across the globe. According to its website, it has more than 95,000 employees that serve more than 12 million patients each year. TPG invests across five multi-product platforms: Capital, Growth, Impact, Real Estate and Market Solutions, as well as a myriad of funds such as The Rise Funds. TPG kicked 2023 off with the acquisition of MedQuest Associates, Inc., a provider of on-site diagnostic imaging services that generates annualized revenue of approximately $200 million. This deal was completed as a... Read More »
The Benefits and Pitfalls of Selling Physician Practices

The Benefits and Pitfalls of Selling Physician Practices

INTRODUCTIONThe Physician Medical Group (PMG) market is one of the most active healthcare sectors, in part driven by how many physicians are choosing to sell their practices to larger entities. As of January 2022, 74% of physicians in the United States are employed by a hospital, health system or corporation, according to data from Avalere, in a report sponsored by the Physicians Advocacy Institute. The consolidation even more pronounced when considering that in January 2021, 69% of physicians were employed by a hospital or corporate entity, the study reported. A 5% rise in just one year is definitely note-worthy. To further understand the consolidation in the PMG space and how that’s... Read More »
In Conversation: Tom Price, MD, Orthopedic Surgeon and Former HHS Secretary

In Conversation: Tom Price, MD, Orthopedic Surgeon and Former HHS Secretary

The orthopedic surgeon, former congressman, and 23rd Secretary of Health and Human Services discusses the role of private equity in healthcare, clinical autonomy, and site-neutral payments. Levin Associates spoke with Dr. Tom Price at the 6th annual Physician Transactions Conference in Las Vegas in March 2023. This Q&A has been lightly edited for clarity and brevity. I’m curious to get your take on the role of private investment in healthcare, considering your background in both medicine and policy. What private equity brings to the table, if you have the right partner, is capital, resources, talent, and expertise on the operations side. The best private equity... Read More »
The big picture: what is driving physician practice M&A?

The big picture: what is driving physician practice M&A?

The role of private investment, what doctors need to know, and what it all means for patients Levin Associates spoke with Dana Jacoby, the CEO and founder of Vector Medical Group, and Gary Herschman, a partner at Epstein Becker & Green, P.C., at the 6th annual Physician Transactions Conference in Las Vegas in March 2023. Their separate interviews have been combined into one Q&A, which has been lightly edited for clarity and brevity. What is the future of private equity and other outside investment in healthcare? Jacoby: I’m very bullish on the future of healthcare and I’m very excited about it. There’s just this crescendo of change coming into... Read More »
Valuations, Competition, and the Future of GI

Valuations, Competition, and the Future of GI

Gastroenterology is a service line with unlimited potential for growth. The expanding patient need for services, combined with advancements that allow more procedures to be performed in outpatient settings, have made gastroenterology an attractive target for investors. Patients utilize gastroenterology services throughout their lifetimes. Gastroenterologists treat a wide variety of conditions impacting the digestive system, which includes the stomach, intestines, gallbladder, pancreas, and liver. Clinicians care for patients experiencing everything from abdominal pain and heartburn to nonalcoholic fatty liver disease and cancers. The stats show that chronic digestive issues keep providers... Read More »
Takeaways from the 6th Annual Physician Transactions Conference

Takeaways from the 6th Annual Physician Transactions Conference

The role of private equity in healthcare was the focus of the 6th Annual Physician Transactions Conference on March 9, 2023. Physicians, private equity investors, investment bankers and other healthcare business leaders gathered in Las Vegas to talk about what independent practices need to know about brokering a deal with a private equity firm.  Attendees posed questions to other physicians who have already entered into PE deals, and panelists provided insights to help physicians consider whether partnering with outside investors will be the right path forward for their practices. Levin Associates was in attendance at the conference. Here is a summary of the main... Read More »