MACRA Is Spooking Physician Medical Groups

by | Sep 26, 2016 2:13 pm | Physician Medical Groups

With a full quarter left to go in 2016, mergers and acquisitions in the Physician Medical Group sector have caught up to last year’s total number of transactions. In 2015, 89 deals were announced. Through September 26, 2016, the sector’s deal volume has reached 88. One factor contributing to the increase in activity is the Medicare Access and CHIP Reauthorization Act (MACRA) passed in April 2015. The bipartisan bill took aim at physician practices treating Medicare Part B patients, and awarded those that went with a value-based reimbursement schedule versus those that stayed with the fee-for-service model. The true impetus, however, came from the aggressive implementation... Read More »

MEDNAX Makes 10

by | Aug 9, 2016 3:21 pm | Physician Medical Groups

MEDNAX (NYSE:MD) hit the big 10 in August 2016, with its tenth acquisition of the year. The serial acquirer picked up privately-held Associated Anesthesiologists of Reno, P.C., the largest anesthesia practice in northern Nevada, offering anesthesia care across a broad range of subspecialties, including orthopedic, obstetric, pediatric and cardiac and critical care. MEDNAX continues to capitalize on anesthesiology practices’ need to become a part of a larger organization in order to meet the data and technology capabilities that hospitals are asking of them, and this purchase marks its sixth anesthesiology acquisition of the year. Outside of anesthesiology, MEDNAX acquired privately-held... Read More »

Q2:16 Results Defy Brexit and Other Uncertainties

by | Jul 18, 2016 1:52 pm | eHealth, Medical Devices, Physician Medical Groups

You’ve seen the headlines: Global mergers and acquisitions slid in the first half of 2016, as did the combined value. The number of middle market deals completed in the second quarter fell to levels not seen since 2009. Buyers are walking away from targets that could be affected by sudden changes in tax regulations. It’s all thanks to Brexit and the U.S. presidential election. Then there’s the healthcare market. Deal volume actually increased compared with the previous quarter in 2016, and the same quarter a year ago. Deal volume for Q2:16 reached 396 announced transactions, up 11% versus Q1:16’s 358 deals, and 15% higher than last year’s 344 deals in the second quarter. For the first half... Read More »

MEDNAX’ MedData Adds RCM Company

by | Jun 16, 2016 8:25 am | eHealth, Physician Medical Groups, Private Equity

MedData, Inc. made its second acquisition this year. The MEDNAX (NYSE: MD) subsidiary agreed to pay $400 million for revenue cycle management (RCM) company Cardon Outreach LLC, a portfolio company of Serent Capital.  Cardon Outreach provides specialized eligibility assistance, accounts receivable recovery services, third-party liability and other services. Cardon Outreach works with more than 800 hospitals and other healthcare facilities in 46 states. The acquisition is expected to be accretive to GAAP earnings. MEDNAX anticipates the acquisition will add an initial $0.06 in annualized diluted earnings per share and $0.14 in annualized adjusted earnings per share. Cain Brothers is... Read More »

MEDNAX and Team Health Keep Growing

by | Jun 9, 2016 8:00 am | Physician Medical Groups

TeamHealth Holdings (NYSE: TMH) is slowly getting back in its M&A groove, after the $1.6 billion acquisition of IPC Healthcare in August 2015. The company announced its second deal in 2016 on June 1, compared with four transactions announced in the first half of 2015. The latest target is Tri-City Emergency Medical Group in Oceanside, California. Tri-City Emergency Medical Group’s 25 physicians provide emergency medical care in north San Diego, treating approximately 70,000 patients annually through staffing and management of the Tri-City Medical Center emergency department. Financial terms were not disclosed. Meanwhile, MEDNAX (NYSE: MD) is keeping up with its 2015 acquisition... Read More »