Physician Medical Group M&A During COVID-19

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 »
Physician Medical Group Deals Stayed Strong in Q1:18

Physician Medical Group Deals Stayed Strong in Q1:18

Physician medical group M&A activity was strong in the first quarter of 2018, according to new acquisition data from HealthCareMandA.com. The number of physician medical group acquisitions increased to 36 in the first quarter, up 9% from the 33 publicly announced acquisitions in the fourth quarter of 2017. Compared with the year-earlier quarter, when a recent record of 59 deals were reported, deal activity was down 39%. None of the transactions disclosed a purchase price. The most prolific buyers were MEDNAX, Inc. (NYSE: MD) and Eye Health South with three acquisitions each, followed by Anne Arundel Dermatology, Gauge Capital, Platinum Dermatology and Team Health, with two deals each.... Read More »
Physician Practices Find Many Buyers

Physician Practices Find Many Buyers

The first quarter of 2018 is nearly over (one week left to go), and the Physician Medical Group sector is still in acquisition mode. Last year, the first quarter saw a record 59 deals announced for physician groups. This year’s Q1 total won’t challenge that, but the 30 deals reported so far show interest isn’t waning for buyers or sellers. We’ve written extensively about private equity groups building platforms of specialty practices, particularly dermatology, anesthesia and ophthalmology. But publicly traded entities are still in the hunt. In the first three weeks of March 2018, 13 deals for physician practices were announced, although none disclosed financial... Read More »
Physician Medical Group Deals Stayed Strong in Q1:18

Dermatology Deals Keep PE Platforms Growing

The Physician Medical Group sector has been very busy in recent years, as hospitals and health systems acquire local practices that can produce referrals and private equity firms build platforms and make add-on deals. Dermatology practices aren’t coveted by hospitals, so it’s the private equity firms that are doing the collecting. In the first eight weeks of 2018, 17 deals for physician medical groups have been annouced, 10 in Janaury and seven in the first three weeks of February. The usual specialty practices were represented in that mix, with Mednax (NYSE: MD) adding a neonatology practice in California, Minnesota-based not-for-profit Fairview Health Services acquiring a... Read More »
Physician Medical Group Deals Stayed Strong in Q1:18

The Physician Medical Group Market Ramps Up

The Physician Medical Group (PMG) space is consolidating at a torrid pace, and the pace won’t slacken in 2018. Last year, deals for physician practices hit a record in the 21st century with 166 transactions, up 27% over the previous year’s 131 transactions. The momentum is indeed continuing into 2018, with eight more acquisitions announced in the first two weeks. The real record was set in 1998, at 264 deals, but that was a very different time and market. Then, publicly traded management companies were building nationwide platforms of physicians. The market collapsed in 1999, and most of those transactions were unwound and the deal makers vowed, “Never again.” Welcome to 2018.... Read More »