Physician Practices Kept Consolidating in Q2:18

Physician Practices Kept Consolidating in Q2:18

by | Jul 19, 2018 5:49 pm | Physician Medical Groups

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

by | May 4, 2018 12:10 pm | Laboratories, MRI & Dialysis, Physician Medical Groups

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 »
Inovalon Buys Ability Network for $1.2 Billion

Inovalon Buys Ability Network for $1.2 Billion

by | Mar 9, 2018 4:37 pm | eHealth

Healthcare IT company Ability Network has been acquired by Inovalon Holdings Inc. (NASDAQ: INOV) for $1.1 billion in cash and $100 million in restricted shares of Inovalon’s Class A stock. Ability Network, a portfolio company of Summit Partners, makes cloud-based programs, which connect healthcare providers and insurers. It is used at over 44,000 acute, post-acute and ambulatory point-of-care provider facilities. It generates approximately $130 million in revenue. Inovalon provides advanced cloud-based data analytics and data-driven intervention platforms to the U.S. healthcare industry. On a trailing 12-month basis, it generated revenue of $449.4 million, EBITDA of $75.9 million and... Read More »

Dealing in Doc Groups Grows in 2017

by | Aug 18, 2017 5:46 pm | Physician Medical Groups

For the Physician Medical Group sector, this year is shaping up to rival 2016’s merger and acquisition activity. Two multi-billion-dollar deals have been announced, through the middle of August. Two such deals were announced in 2016, although they were for larger amounts. So far in 2017, 104 transactions for physician practices have been made public, just 20% lower than the 2016 total of 130 deals. There’s still time to catch up to that recent high, obviously. Spending is a different story, as usual. Through mid-August, nearly $5.5 billion has been committed to finance these doctor deals, which is 59% lower than the full-year total of $13.3 billion in 2016. The latest major... Read More »