MEDNAX Looks to Improve the Patient Experience

by | May 4, 2016 5:45 pm | eHealth, Physician Medical Groups

MEDNAX , Inc. (NYSE: MD), once focused exclusively on managing neonatology and anesthesia practices, is moving to manage the entire patient experience. In August 2014, it acquired MedData, Inc., a revenue cycle management company for an undisclosed price. The plan was to provide management services to facilities and physician groups beyond its then-existing footprint. A year later, in September 2015, MedData brought aboard Alegis Revenue Group, a national third-party receivables company. Alegis managed more than $3 billion in charges for more than 240 hospitals nationwide. The company’s patient-advocacy approach to eligibility and enrollment cut revenue cycle time from referral to... Read More »

Acquisition Outlook for Doc Groups: Wait and See

by | Feb 5, 2016 7:45 pm | Physician Medical Groups

2015 was a very good year for acquisitions in the Physician Medical Group (PMG) sector. With 88 transactions in total, deal volume was up 47% compared with 2014. The sector’s largest deal, Team Health’s (NYSE: TMH) $1.6 billion acquisition of IPC Healthcare, combined two of the sector’s top acquirers (see chart below). That deal closed in November 2015. Since then, things have gone very quiet in the PMG sector. The fourth quarter of 2015 closed with 22 deals for doc groups, beating the third quarter’s 19 deals and Q4:14’s 17 deals. So far this year, only five transactions have been made public, compared with 12 in the same period a year ago. At least a portion... Read More »

Competition Continues for Anesthesiology Groups

by | Aug 3, 2015 8:37 am | Physician Medical Groups

Only three acquisitions of physician medical groups (PMG) were made public in July, but all three targeted anesthesiology practices. MEDNAX (NYSE: MD) announced two deals, one for Manassas Anesthesiology Associates in Virginia, and the other for Lakeshore Anesthesia Services, PC in Muskegon, Michigan.  Sherdian, a subsidiary of AmSurg Corp. (NASDAQ: AMSG), acquired Coastal Anesthesiology Associates, PA in St. Augustine, Florida. These three transactions bring the total number of anesthesiology deals to 11, or 23% of the 47 PMG transactions we’ve recorded in this sector so far in 2015. Read More »

Physician Medical Group M&A Is Going Strong

by | Jul 27, 2015 6:25 pm | Physician Medical Groups

Nearly seven full months through the year, M&A in the Physician Medical Group (PMG) sector is on pace to post its second-highest deal volume since 2000. As of July 24, we’ve recorded 47 acquisitions, which is second only to 2011, when 56 transactions were announced in the same time period. The biggest deal in the second quarter of 2015 was MEDNAX’s (NYSE: MD) $500 million acquisition of Virtual Radiologic Corporation(aka vRad). That works out to 2.7x price/revenue, 20.0x price/EBITDA—and a whopping $1.4 million per radiologist. Keep ‘em coming. Read More »

Five Biggest Healthcare Deals in May 2015

by | Jun 1, 2015 7:06 pm | Pharmaceuticals

The last week of May slowed to a crawl as far as announced health care transactions, but preliminary totals for deal volume and value indicate that May 2015 wasn’t too shabby. As of May 29, we counted 101 healthcare transactions, with a combined total of $32.4 billion. A year ago, there were 109 M&A announcements, for a total of $27.5 billion. We’ll go into detail in the June issue of Health Care M&A News, so watch for the publication announcement later this week.  Read More »