Physician Practices Kept Consolidating in Q2:18

Physician Practices Kept Consolidating in Q2:18

Investor interest in physician medical groups ramped up significantly in 2018, with 55 transactions announced in the first quarter, followed by 53 deals in the second quarter. The second quarter deals represent 29% of the total of 184 announced in the previous 12 months. Deal volume slipped 4% compared with the previous quarter but posted a 61% increase versus the same quarter a year earlier. Physicians in small practices have been under growing pressure from regulations and legislation, changes in reimbursement cycles and episodes of care. Under MACRA, they may be the lead provider when it comes to bundled payments, which makes primary care and hospital-based physicians of interest to... Read More »
Fresenius Sells Sound Inpatient Physicians for $2.15 Billion

Fresenius Sells Sound Inpatient Physicians for $2.15 Billion

What began in 2014 as a grand round of acquisitions of physician medical groups became a multi-billion-dollar exit four years later. Fresenius Medical Care (NYSE: FMS), the world’s largest provider of dialysis products and services, took “an important strategic step to sharpen its U.S. Care Coordination profile” and sell its controlling interest in Sound Inpatient Physicians Holdings, LLC for $2.15 billion. The buyers are led by Summit Partners, a Boston-based private equity firm. Back in June 2014, Fresenius acquired Sound Physicians, as it was called, for $600 million. The group was comprised of more than 1,000 physicians in more than 100 hospitals. The acquisition was... Read More »
Quest Diagnostics Buys a Fresenius Lab

Quest Diagnostics Buys a Fresenius Lab

Deal volume in the Laboratories, MRI & Dialysis sector is up 6% from this time last year. On September 28, two major players in the laboratory space traded hands and began collaborating on a kidney disease project. Quest Diagnostics (NYSE: DGX), a leading provider of diagnostic testing in the United States, announced its purchase of Shiel Medical Laboratory, Inc. from Fresenius Medical Care (NYSE: FMS). Fresenius acquired Shiel Medical Laboratory in October 2013 via its subsidiary Spectra Labs, which is not affected by the divestiture. Founded in 1919, Shiel Medical is one of the oldest continuously operating clinical laboratories in the United States. Its main testing facility is in... Read More »

Fresenius Banks on Dialysis at Home

Fresenius, a global leader in dialysis, brings dialysis into the home with a $2 billion deal. As hospitals and other providers face mounting pressure to deliver high-quality, lower cost services, one company has taken the initiative to become a world-leader in at-home critical care. On August 7, 2017, Fresenius Medical Care (NYSE: FMS) acquired NxStage Medical, Inc. (NASDAQ: NXTM) for $2.0 billion. Fresenius Medical Care will acquire all outstanding shares of NxStage for $30.00 per common share, valuing the deal at approximately $2.0 billion, including $1.24 million of debt. Multiples work out to 5.11x revenue and 7.97x EBITDA. Based in Boston, NxStage Medical develops, manufactures, and... Read More »

Two Deals for Renal Care Providers

Consolidation is still possible in the kidney-care sector, even though Fresenius Medical Care (NYSE: FMS) and DaVita HealthCare Partners (NYSE: DVA) appear to have about 90% of the U.S. market. Last week, DaVita announced its $415 million acquisition of Renal Ventures Management, LLC, a network of 36 dialysis clinics in six states, with headquarters in Lakewood, Colorado. RVM’s two physician divisions, Multispecialty Physician Partners and Physician Venture Partners were part of the deal. The second acquisition came from a much smaller player, privately held U.S. Renal Care, Inc. of Plano, Texas. The target was DSI Renal, owned by Frazier Healthcare and New Enterprise Associates, which... Read More »