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 »
New Enterprise Associates Adds Paladina Health to Its Portfolio

New Enterprise Associates Adds Paladina Health to Its Portfolio

New Enterprise Associates (NEA) has a strong healthcare portfolio, filled with digital health, population health management and physician practices. On June 6, the private equity firm added another physician group, Paladina Health, for a reported $100 million. It’s not surprising that the bidding was “highly competitive,” according to a CNBC source, and that there were other private equity firms in the process. What is interesting is the nod that “a large retailers and pharmacy chain” was also in the hunt. Hello, CVS Health (NYSE: CVS)? Paladina Health, a subsidiary of DaVita Inc. (NYSE: DVA), is a primary care practice with 53 clinics in 10 states. It... Read More »