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 »

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 »

MEDNAX Moves into New Territory

by | May 18, 2015 6:03 pm | Other Services

Last week MEDNAX, Inc. (NYSE: MD), which now brands itself as a national medical company, has kept a steady focus on its Pediatrix Medical Group and American Anesthesiology divisions for years. But last week marked its foray into radiology and telemedicine, with the $500 million acquisition of Virtual Radiologic Corporation (vRad). The deal adds a network of 350 radiologists, more than 75% percent of whom are subspecialty trained. They read and interpret more than five million diagnostic imaging studies annually, which are archived in vRad’s proprietary picture archive and communication system (PACS). MEDNAX gains radiology coverage in more than 2,100 healthcare facilities across all 50... Read More »