Healthcare Intelligencer and Becker’s ASC Review cover PGP representation of Wellspring Pain Solutions
https://www.physiciangrowthpartners.com/media-mentions/healthcare-intelligencer-and-beckers-asc-review-cover-pgp-representation-of-wellspring-pain-solutions/

Physician Growth Partners’ (“PGP”) recent representation of Wellspring Pain Solutions, an Indiana-based pain management clinic and ambulatory surgery center, was covered by the Healthcare Intelligencer and Becker’s ASC Review.

Healthcare Intelligencer is published by Healthcare Dealflow, a publishing company focused on private equity firms, strategic acquirers, investment banks, and healthcare providers. Becker’s ASC Review is just one of several newsletters that Becker’s publishes for various medical specialties. Both publications are respected information sources for varied parts of the healthcare industry.

You can learn more about the Healthcare Intelligencer here, and you can read the Becker’s article at this link.

The post Healthcare Intelligencer and Becker’s ASC Review cover PGP representation of Wellspring Pain Solutions appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
December 16, 2022 at 09:17AM

Private Equity and What It Means for Your Medical Practice
https://physiciangrowthpartners.com/market-update/choosing-a-transaction-advisor/

Why you need a knowledgeable transaction advisor in your corner

and how to choose the right one

The appetite of private equity (PE) investors for healthcare assets has continued to grow in recent years and shows no signs of slowing. According to a recent Bain Report on Global Healthcare PE investment, in 2021 the industry set new records for deal volume, deal size, and total dollars raised for future healthcare investment. And even though billion-dollar deals dominate the business press, private equity buyers are eager to acquire the consistent cash flow and growth potential that healthcare practices can provide, whether it be focused on urology, orthopedics, cardiology, gastroenterology, behavioral health, or any other healthcare provider. During the last decade, there has been a significant uptick in physician practice M&A activity, with interest that has been validated by successful forays into dental, dermatology, and eye care.

By now you’ve likely heard of peers or former colleagues receiving multi-million-dollar unsolicited offers from PE buyers – perhaps you’ve received one yourself – but the lure of a big payday can often obscure the many pitfalls and challenges that exist when considering such an important transaction. Getting private equity involved in your medical practice comes with plenty of questions. Is it better to sell to a private equity group or to an area hospital? Can you maintain operational independence after selling to a private equity group? What are the regulatory issues? How are these deals typically structured and what is fair compensation?

All these issues, and many more can overwhelm even the best run practice group. That is the reason that Michael Kroin and Ezra Simons founded Physician Growth Partners (PGP) in 2017 – to proactively advise and advocate for practice groups exploring a sale to healthcare private equity investors.

What to consider when choosing a transaction advisor?

Because private equity transactions often begin with a physician practice receiving an unsolicited offer, some may think that hiring a transaction advisor is unnecessary. Some may think, “I have an impressive offer in hand” and not believe they need assistance. Others may already have a relationship with the potential investor and say to themselves, “I can negotiate on my own and get a good deal.”  Still another thought may be that the physician’s own lawyer or accountant can handle the transaction alone.

In fact, these beliefs can all lead to errors with potential far reaching consequences.

Just as you wouldn’t sell your house to the first person that knocks on your door and is willing to write a check, physician groups should never limit their negotiations to just one bidder, no matter how impressive the first offer is. In addition, few physician organizations have the necessary financial analysis, marketing, and negotiating expertise to tackle a private equity transaction without assistance.

For example, it is extremely important to understand the difference between EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and multiples, as well as focusing on which offers more benefit to the selling physicians. When properly handled, a healthcare private equity consultation involves more than advisory work, but also considers financial engineering and the operational and administrative structure under which the selling physicians will work after the transaction is complete.

Because our team handles only transactions involving physician practices, each of our advisors understands how specialty medical practices work, know how to uncover appropriate market value, and can effectively communicate that value to a wide range of private equity bidders to achieve the best deal price AND terms. Here are just a few of the key considerations to keep in mind when choosing a transaction advisor:

Relationships with and knowledge of potential private equity bidders

Knowledge of and experience with your specialty practice

Experience analyzing and presenting the financials of a practice like yours

Skill to help you better understand the deal process and manage it effectively

A track record of success for physician practices like yours

To demonstrate the depth of our knowledge and experience with specialty practices, let’s look at current US market approaches for private equity investment in physician practices.

The Private Equity Strategy

Private equity firms that are investing in healthcare, especially those focused on physician specialties, have adopted a “platform-based” strategy to organize and channel their approach. This means firms are making a large initial investment by acquiring a regionally dominant practice that is used as a platform upon which subsequent investments in smaller practices can be added. Using this model, firms may quickly establish multi-state and regional dominance, building scale while recognizing operational, technological, and marketing synergies driven by geographic proximity.

Another strategy that some investor groups take is to acquire strong, clinically driven practices in multiple areas, establishing a brand known for exceptional patient outcomes. Many physicians are worried that healthcare private equity investors will interfere with practice management, affecting patient experience while dictating to the physician how to practice medicine. Most private equity firms are aware of this risk, and instead aim to remain in the background, working to eliminate inefficiencies and drive growth, while preferring physicians to take leadership roles and be fully committed to patient care.

As such, healthcare private equity investors are looking for physicians that are strong leaders and have impeccable reputations. Cultural fit is one of the most underrated, yet important aspects of choosing a private equity partner in healthcare. To ensure the continued success of a physician practice, it is crucial that there is strategic alignment and mutual respect between the parties. This can best be accomplished by fully vetting all possible partnership opportunities.

Healthcare private equity groups typically look to scale the physician practice platforms they invest in over a 3-to-7-year period before ultimately evaluating an exit, securing a healthy return on investment for all involved.  These exits often move the practice to a larger private equity investor or to a merger of similar platforms. They may also ultimately partner with an insurance payor, or even go public, but this has not taken place yet.  Healthcare private equity investors focus on specialties that will benefit from continued growth in the aging population, supply & demand imbalance, and increasing prevalence of chronic conditions.

What is the benefit of working with Private Equity?

Selling to a reputable healthcare private equity firm can bring unique benefits to a physician practice. It often means doing away with or greatly reducing the administrative burden of the physicians, letting them focus more clearly on helping their patients. One of the most crucial changes made by many private equity investors is to establish a Management Service Organization structure to handle duties like operational and financial management, human resources and hiring, billing and collections. This innovation empowers the physician team to focus on patient care and gives them access to resources that they would not otherwise have. Healthcare private equity investment also provides the capital to accelerate the growth of the practice through acquisitions, de novo locations, expansions of service lines and upgrading equipment, which benefits the patient population.

The alternative of selling to a PE firm may be to consider a sale to a local hospital or regional healthcare provider. However, these transactions rarely deliver the independence, clinical autonomy, or the financial rewards that a private equity deal can offer. The sale price for a practice is often significantly higher when selling to a healthcare private equity group versus vs a hospital system. Typically, a health system will simply offer to purchase a medical practice’s fixed assets plus the offer of long-term employment arrangements for the selling physicians.  In contrast, PE groups can offer much more lucrative offer by applying a significant multiple of the practice’s earnings or EBITDA.

How can a transaction advisor help you?

Not all private equity firms conduct business the same way, and it is important to be comfortable with a firm’s approach to ensure the right cultural fit, since this will drive the remainder of a physician’s career.

There is much more to these transactions than pure economics, since the deal terms will guide the future of the practice operations and how the medical providers work and are compensated, what additional investment will take place, etc.

Physician Growth Partners’ advisory team assists clients to explore all viable options, while running a competitive process to achieve the most favorable outcome from the perspective of both economics and deal terms.  PGP has extensive experience negotiating against most of the platforms that PE firms have established within each respective specialty, as well as the healthcare private equity groups driving these investments.

As a result, we can help physician groups develop a clear case that explains the practice’s appropriate value, markets the package to attract the best investment partners, and then evaluate the pros and cons of each potential deal before negotiating an excellent agreement that all parties are satisfied with.

About Physician Growth Partners

Physician Growth Partners is one of the most active national healthcare advisory firms dedicated to representing physician platforms in transactions with private equity. PGP creates value by providing operational support, strategic positioning, and transaction advisory, delivering an optimal outcome for its clients.

The post Private Equity and What It Means for Your Medical Practice appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
August 02, 2022 at 01:52PM

Private Equity and What It Means for Your Medical Practice
https://www.physiciangrowthpartners.com/market-update/choosing-a-transaction-advisor/

Why you need a knowledgeable transaction advisor in your corner

and how to choose the right one

The appetite of private equity (PE) investors for healthcare assets has continued to grow in recent years and shows no signs of slowing. According to a recent Bain Report on Global Healthcare PE investment, in 2021 the industry set new records for deal volume, deal size, and total dollars raised for future healthcare investment. And even though billion-dollar deals dominate the business press, private equity buyers are eager to acquire the consistent cash flow and growth potential that healthcare practices can provide, whether it be focused on urology, orthopedics, cardiology, gastroenterology, behavioral health, or any other healthcare provider. During the last decade, there has been a significant uptick in physician practice M&A activity, with interest that has been validated by successful forays into dental, dermatology, and eye care.

By now you’ve likely heard of peers or former colleagues receiving multi-million-dollar unsolicited offers from PE buyers – perhaps you’ve received one yourself – but the lure of a big payday can often obscure the many pitfalls and challenges that exist when considering such an important transaction. Getting private equity involved in your medical practice comes with plenty of questions. Is it better to sell to a private equity group or to an area hospital? Can you maintain operational independence after selling to a private equity group? What are the regulatory issues? How are these deals typically structured and what is fair compensation?

All these issues, and many more can overwhelm even the best run practice group. That is the reason that Michael Kroin and Ezra Simons founded Physician Growth Partners (PGP) in 2017 – to proactively advise and advocate for practice groups exploring a sale to healthcare private equity investors.

What to consider when choosing a transaction advisor?

Because private equity transactions often begin with a physician practice receiving an unsolicited offer, some may think that hiring a transaction advisor is unnecessary. Some may think, “I have an impressive offer in hand” and not believe they need assistance. Others may already have a relationship with the potential investor and say to themselves, “I can negotiate on my own and get a good deal.”  Still another thought may be that the physician’s own lawyer or accountant can handle the transaction alone.

In fact, these beliefs can all lead to errors with potential far reaching consequences.

Just as you wouldn’t sell your house to the first person that knocks on your door and is willing to write a check, physician groups should never limit their negotiations to just one bidder, no matter how impressive the first offer is. In addition, few physician organizations have the necessary financial analysis, marketing, and negotiating expertise to tackle a private equity transaction without assistance.

For example, it is extremely important to understand the difference between EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and multiples, as well as focusing on which offers more benefit to the selling physicians. When properly handled, a healthcare private equity consultation involves more than advisory work, but also considers financial engineering and the operational and administrative structure under which the selling physicians will work after the transaction is complete.

Because our team handles only transactions involving physician practices, each of our advisors understands how specialty medical practices work, know how to uncover appropriate market value, and can effectively communicate that value to a wide range of private equity bidders to achieve the best deal price AND terms. Here are just a few of the key considerations to keep in mind when choosing a transaction advisor:

Relationships with and knowledge of potential private equity bidders

Knowledge of and experience with your specialty practice

Experience analyzing and presenting the financials of a practice like yours

Skill to help you better understand the deal process and manage it effectively

A track record of success for physician practices like yours

To demonstrate the depth of our knowledge and experience with specialty practices, let’s look at current US market approaches for private equity investment in physician practices.

The Private Equity Strategy

Private equity firms that are investing in healthcare, especially those focused on physician specialties, have adopted a “platform-based” strategy to organize and channel their approach. This means firms are making a large initial investment by acquiring a regionally dominant practice that is used as a platform upon which subsequent investments in smaller practices can be added. Using this model, firms may quickly establish multi-state and regional dominance, building scale while recognizing operational, technological, and marketing synergies driven by geographic proximity.

Another strategy that some investor groups take is to acquire strong, clinically driven practices in multiple areas, establishing a brand known for exceptional patient outcomes. Many physicians are worried that healthcare private equity investors will interfere with practice management, affecting patient experience while dictating to the physician how to practice medicine. Most private equity firms are aware of this risk, and instead aim to remain in the background, working to eliminate inefficiencies and drive growth, while preferring physicians to take leadership roles and be fully committed to patient care.

As such, healthcare private equity investors are looking for physicians that are strong leaders and have impeccable reputations. Cultural fit is one of the most underrated, yet important aspects of choosing a private equity partner in healthcare. To ensure the continued success of a physician practice, it is crucial that there is strategic alignment and mutual respect between the parties. This can best be accomplished by fully vetting all possible partnership opportunities.

Healthcare private equity groups typically look to scale the physician practice platforms they invest in over a 3-to-7-year period before ultimately evaluating an exit, securing a healthy return on investment for all involved.  These exits often move the practice to a larger private equity investor or to a merger of similar platforms. They may also ultimately partner with an insurance payor, or even go public, but this has not taken place yet.  Healthcare private equity investors focus on specialties that will benefit from continued growth in the aging population, supply & demand imbalance, and increasing prevalence of chronic conditions.

What is the benefit of working with Private Equity?

Selling to a reputable healthcare private equity firm can bring unique benefits to a physician practice. It often means doing away with or greatly reducing the administrative burden of the physicians, letting them focus more clearly on helping their patients. One of the most crucial changes made by many private equity investors is to establish a Management Service Organization structure to handle duties like operational and financial management, human resources and hiring, billing and collections. This innovation empowers the physician team to focus on patient care and gives them access to resources that they would not otherwise have. Healthcare private equity investment also provides the capital to accelerate the growth of the practice through acquisitions, de novo locations, expansions of service lines and upgrading equipment, which benefits the patient population.

The alternative of selling to a PE firm may be to consider a sale to a local hospital or regional healthcare provider. However, these transactions rarely deliver the independence, clinical autonomy, or the financial rewards that a private equity deal can offer. The sale price for a practice is often significantly higher when selling to a healthcare private equity group versus vs a hospital system. Typically, a health system will simply offer to purchase a medical practice’s fixed assets plus the offer of long-term employment arrangements for the selling physicians.  In contrast, PE groups can offer much more lucrative offer by applying a significant multiple of the practice’s earnings or EBITDA.

How can a transaction advisor help you?

Not all private equity firms conduct business the same way, and it is important to be comfortable with a firm’s approach to ensure the right cultural fit, since this will drive the remainder of a physician’s career.

There is much more to these transactions than pure economics, since the deal terms will guide the future of the practice operations and how the medical providers work and are compensated, what additional investment will take place, etc.

Physician Growth Partners’ advisory team assists clients to explore all viable options, while running a competitive process to achieve the most favorable outcome from the perspective of both economics and deal terms.  PGP has extensive experience negotiating against most of the platforms that PE firms have established within each respective specialty, as well as the healthcare private equity groups driving these investments.

As a result, we can help physician groups develop a clear case that explains the practice’s appropriate value, markets the package to attract the best investment partners, and then evaluate the pros and cons of each potential deal before negotiating an excellent agreement that all parties are satisfied with.

About Physician Growth Partners

Physician Growth Partners is one of the most active national healthcare advisory firms dedicated to representing physician platforms in transactions with private equity. PGP creates value by providing operational support, strategic positioning, and transaction advisory, delivering an optimal outcome for its clients.

The post Private Equity and What It Means for Your Medical Practice appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
August 02, 2022 at 01:52PM

Private Equity and What It Means for Your Medical Practice
https://www.physiciangrowthpartners.com/market-update/choosing-a-transaction-advisor/

Why you need a knowledgeable transaction advisor in your corner

and how to choose the right one

The appetite of private equity (PE) investors for healthcare assets has continued to grow in recent years and shows no signs of slowing. According to a recent Bain Report on Global Healthcare PE investment, in 2021 the industry set new records for deal volume, deal size, and total dollars raised for future healthcare investment. And even though billion-dollar deals dominate the business press, private equity buyers are eager to acquire the consistent cash flow and growth potential that healthcare practices can provide, whether it be focused on urology, orthopedics, cardiology, gastroenterology, behavioral health, or any other healthcare provider. During the last decade, there has been a significant uptick in physician practice M&A activity, with interest that has been validated by successful forays into dental, dermatology, and eye care.

By now you’ve likely heard of peers or former colleagues receiving multi-million-dollar unsolicited offers from PE buyers – perhaps you’ve received one yourself – but the lure of a big payday can often obscure the many pitfalls and challenges that exist when considering such an important transaction. Getting private equity involved in your medical practice comes with plenty of questions. Is it better to sell to a private equity group or to an area hospital? Can you maintain operational independence after selling to a private equity group? What are the regulatory issues? How are these deals typically structured and what is fair compensation?

All these issues, and many more can overwhelm even the best run practice group. That is the reason that Michael Kroin and Ezra Simons founded Physician Growth Partners (PGP) in 2017 – to proactively advise and advocate for practice groups exploring a sale to healthcare private equity investors.

What to consider when choosing a transaction advisor?

Because private equity transactions often begin with a physician practice receiving an unsolicited offer, some may think that hiring a transaction advisor is unnecessary. Some may think, “I have an impressive offer in hand” and not believe they need assistance. Others may already have a relationship with the potential investor and say to themselves, “I can negotiate on my own and get a good deal.”  Still another thought may be that the physician’s own lawyer or accountant can handle the transaction alone.

In fact, these beliefs can all lead to errors with potential far reaching consequences.

Just as you wouldn’t sell your house to the first person that knocks on your door and is willing to write a check, physician groups should never limit their negotiations to just one bidder, no matter how impressive the first offer is. In addition, few physician organizations have the necessary financial analysis, marketing, and negotiating expertise to tackle a private equity transaction without assistance.

For example, it is extremely important to understand the difference between EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and multiples, as well as focusing on which offers more benefit to the selling physicians. When properly handled, a healthcare private equity consultation involves more than advisory work, but also considers financial engineering and the operational and administrative structure under which the selling physicians will work after the transaction is complete.

Because our team handles only transactions involving physician practices, each of our advisors understands how specialty medical practices work, know how to uncover appropriate market value, and can effectively communicate that value to a wide range of private equity bidders to achieve the best deal price AND terms. Here are just a few of the key considerations to keep in mind when choosing a transaction advisor:

Relationships with and knowledge of potential private equity bidders

Knowledge of and experience with your specialty practice

Experience analyzing and presenting the financials of a practice like yours

Skill to help you better understand the deal process and manage it effectively

A track record of success for physician practices like yours

To demonstrate the depth of our knowledge and experience with specialty practices, let’s look at current US market approaches for private equity investment in physician practices.

The Private Equity Strategy

Private equity firms that are investing in healthcare, especially those focused on physician specialties, have adopted a “platform-based” strategy to organize and channel their approach. This means firms are making a large initial investment by acquiring a regionally dominant practice that is used as a platform upon which subsequent investments in smaller practices can be added. Using this model, firms may quickly establish multi-state and regional dominance, building scale while recognizing operational, technological, and marketing synergies driven by geographic proximity.

Another strategy that some investor groups take is to acquire strong, clinically driven practices in multiple areas, establishing a brand known for exceptional patient outcomes. Many physicians are worried that healthcare private equity investors will interfere with practice management, affecting patient experience while dictating to the physician how to practice medicine. Most private equity firms are aware of this risk, and instead aim to remain in the background, working to eliminate inefficiencies and drive growth, while preferring physicians to take leadership roles and be fully committed to patient care.

As such, healthcare private equity investors are looking for physicians that are strong leaders and have impeccable reputations. Cultural fit is one of the most underrated, yet important aspects of choosing a private equity partner in healthcare. To ensure the continued success of a physician practice, it is crucial that there is strategic alignment and mutual respect between the parties. This can best be accomplished by fully vetting all possible partnership opportunities.

Healthcare private equity groups typically look to scale the physician practice platforms they invest in over a 3-to-7-year period before ultimately evaluating an exit, securing a healthy return on investment for all involved.  These exits often move the practice to a larger private equity investor or to a merger of similar platforms. They may also ultimately partner with an insurance payor, or even go public, but this has not taken place yet.  Healthcare private equity investors focus on specialties that will benefit from continued growth in the aging population, supply & demand imbalance, and increasing prevalence of chronic conditions.

What is the benefit of working with Private Equity?

Selling to a reputable healthcare private equity firm can bring unique benefits to a physician practice. It often means doing away with or greatly reducing the administrative burden of the physicians, letting them focus more clearly on helping their patients. One of the most crucial changes made by many private equity investors is to establish a Management Service Organization structure to handle duties like operational and financial management, human resources and hiring, billing and collections. This innovation empowers the physician team to focus on patient care and gives them access to resources that they would not otherwise have. Healthcare private equity investment also provides the capital to accelerate the growth of the practice through acquisitions, de novo locations, expansions of service lines and upgrading equipment, which benefits the patient population.

The alternative of selling to a PE firm may be to consider a sale to a local hospital or regional healthcare provider. However, these transactions rarely deliver the independence, clinical autonomy, or the financial rewards that a private equity deal can offer. The sale price for a practice is often significantly higher when selling to a healthcare private equity group versus vs a hospital system. Typically, a health system will simply offer to purchase a medical practice’s fixed assets plus the offer of long-term employment arrangements for the selling physicians.  In contrast, PE groups can offer much more lucrative offer by applying a significant multiple of the practice’s earnings or EBITDA.

How can a transaction advisor help you?

Not all private equity firms conduct business the same way, and it is important to be comfortable with a firm’s approach to ensure the right cultural fit, since this will drive the remainder of a physician’s career.

There is much more to these transactions than pure economics, since the deal terms will guide the future of the practice operations and how the medical providers work and are compensated, what additional investment will take place, etc.

Physician Growth Partners’ advisory team assists clients to explore all viable options, while running a competitive process to achieve the most favorable outcome from the perspective of both economics and deal terms.  PGP has extensive experience negotiating against most of the platforms that PE firms have established within each respective specialty, as well as the healthcare private equity groups driving these investments.

As a result, we can help physician groups develop a clear case that explains the practice’s appropriate value, markets the package to attract the best investment partners, and then evaluate the pros and cons of each potential deal before negotiating an excellent agreement that all parties are satisfied with.

About Physician Growth Partners

Physician Growth Partners is one of the most active national healthcare advisory firms dedicated to representing physician platforms in transactions with private equity. PGP creates value by providing operational support, strategic positioning, and transaction advisory, delivering an optimal outcome for its clients.

The post Private Equity and What It Means for Your Medical Practice appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
August 02, 2022 at 01:52PM

‘Modern Aesthetics’ covers PGP representation of NW Specialists for Women
https://www.physiciangrowthpartners.com/media-mentions/modern-aesthetics-covers-pgp-representation-of-nw-specialists-for-women/

Modern Aesthetics is “the source for expert advice on patient care and practice development for cosmetic surgeons.” Recently the publication’s website covered the Physician Growth Partners’ representation of The Northwestern Specialists for Women in its transaction with Together Women’s Health, a portfolio company of Shore Capital Partners.

The Northwestern Specialists for Women was founded in 2008 and has since become one of the most prominent OB/GYN practices in the Chicago area. For more information on this transaction, please read the Modern Aesthetics article here.

The post ‘Modern Aesthetics’ covers PGP representation of NW Specialists for Women appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
September 07, 2022 at 09:53AM

‘Daily Company News’ profiles Physician Growth Partners
https://www.physiciangrowthpartners.com/media-mentions/daily-company-news-profiles-physician-growth-partners/

Daily Company News is an online business publication focusing on business, technology, science and leadership. Recently the site’s editor conducted a Q&A with PGP Marketing Director Christopher Batio.

The resulting article contains a short profile of the firm, information on a recent transaction, and details about PGP’s plans for the future. To read the full article please visit the Daily Company News website here.

The post ‘Daily Company News’ profiles Physician Growth Partners appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
September 14, 2022 at 11:36AM

Yahoo! Finance focuses on PGP representation of Indiana urology group
https://www.physiciangrowthpartners.com/media-mentions/yahoo-finance-focuses-on-pgp-representation-of-indiana-urology-group/

Recently Physician Growth Partners (“PGP”) represented Urology Associates LLC in a partnership with Solaris Health Partners (“Solaris”), which is a portfolio company of NY-based Lee Equity. With four main clinical locations across Central Indiana, Urology Associates has established itself as the premier private urology practice in the region. As a part of this transaction, Urology Associates will become part of Solaris and be a part of that firm’s continued expansion into the Midwestern health care market.

You can read more about this transaction at the Yahoo! Finance website.

The post Yahoo! Finance focuses on PGP representation of Indiana urology group appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
September 20, 2022 at 09:13AM

DealFlow interviews PGP CEO Michael Kroin on how private equity improves US health care
https://www.physiciangrowthpartners.com/uncategorized/dealflow-interviews-pgp-ceo-michael-kroin-on-how-private-equity-improves-us-health-care/

An exclusive article published today in Deal Flow’s Health Care Services Investment News featured an extensive interview with Physician Growth Partners CEO and Co-Founder Michael Kroin. The article, by writer Nate Birt, focused on “How Private Equity Improves U.S. Health Care and Modern Medical Practices.”

The article shared that “private equity invested $206 billion across American health care in 2021 alone” and cited this as an example of how “public critiques of private equity engagement in U.S. health care overlook fundamental social and financial benefits of these investments.” Michael Kroin was cited extensively in the article, talking about private equity, PGP, and how “the company represents physicians seeking private equity investment and helps them navigate the landscape, get the best valuation and find financial partners that are the best cultural fit and the best positioned to help doctors achieve their goals and succession plans.”

For more information, read the DealFlow article here.

The post DealFlow interviews PGP CEO Michael Kroin on how private equity improves US health care appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
September 22, 2022 at 11:45AM

Behavioral Health Business covers PGP sale of Psych360
https://www.physiciangrowthpartners.com/media-mentions/behavioral-health-business-covers-pgp-sale-of-psych360/

The recent sale of Psych360 to MindCare Solutions Group was covered by Behavioral Health Business, which is an independent source for up-to-date information on the mental health and addiction recovery industry.

Psych360 was founded in 2015 and offers mental health services to long-term care facilities and group homes. In 2018, Physician Growth Partners (“PGP”) made a substantial investment in the company, also providing operational assistance and consulting.

Read more about the Psych360 sale and MindCare’s plans for future growth at the Behavioral Health Business website.

The post Behavioral Health Business covers PGP sale of Psych360 appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
October 18, 2022 at 08:35AM

Bakersfield Californian and Yahoo! Finance cover PGP representation of Hodari MD Dermatology & Rejuvené
https://www.physiciangrowthpartners.com/media-mentions/bakersfield-californian-covers-pgp-representation-of-hodari-md-dermatology-rejuvene/

The Bakersfield Californian, a daily newspaper in central California, and Yahoo! Finance have both included news of the recent transaction by Hodari MD Dermatology & Rejuvené and PhyNet Dermatology on their respective web pages. Hodari Dermatology was founded by Dr. Kafele T. Hodari in 2017 and has grown to three locations including a med spa. Physician Growth Partners acted as transaction advisor for Dr. Hodari in negotiating the new partnership.

Please read the full story at The Bakersfield Californian website or at Yahoo! Finance.

The post Bakersfield Californian and Yahoo! Finance cover PGP representation of Hodari MD Dermatology & Rejuvené appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
October 21, 2022 at 01:38PM

Modern Aesthetics publishes PGP article on reacting effectively to a private equity offer
https://www.physiciangrowthpartners.com/media-mentions/modern-aesthetics-publishes-pgp-article-on-reacting-effectively-to-a-private-equity-offer/

The September/October issue of Modern Aesthetics, a magazine for aesthetic dermatology practices, has published a feature article by Physician Growth Partners’ (“PGP”) co-founders Michael Kroin and Ezra Simons titled, “I Just Received an Offer from a Private Equity Firm. What Should I Do Now?”

The article focuses on what PE investors are looking for and why consulting a transaction advisor like PGP is so important. Here is an excerpt:

“Dermatology and aesthetics practices are especially attractive to private equity firms since there is an imbalance of supply and demand fundamentals, benefits of economies of scale, and independence from hospitals. The lure of a big payday can often obscure the many pitfalls and challenges that exist when considering such an important transaction. Health care transaction advisors that specialize in deals involving physician practices have expertise in working with specialty physician practices, know how to uncover their appropriate market value, and are experienced in effectively communicating the practice value to a wide range of private equity bidders to achieve the best deal price and terms.”

To read or download the full article, please visit the Modern Aesthetics website.

The post Modern Aesthetics publishes PGP article on reacting effectively to a private equity offer appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
October 25, 2022 at 08:04AM

Mergers & Acquisitions covers PGP representation of The Ross Center
https://www.physiciangrowthpartners.com/media-mentions/mergers-acquisitions-covers-pgp-representation-of-the-ross-center/

Physician Growth Partners’ (“PGP”) recent representation of The Ross Center, a DC and NY-based behavioral health clinic, was covered by Mergers & Acquisitions, the oldest trade publication for the dealmaker community. 

You can read more about The Ross Center’s partnership with ARC Health, a unit of Chicago-based Thurston Group, at the Mergers & Acquisition website.

The post Mergers & Acquisitions covers PGP representation of The Ross Center appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
October 25, 2022 at 08:18AM

Ezra Simons quoted in Behavioral Health Business
https://www.physiciangrowthpartners.com/media-mentions/ezra-simons-quoted-in-behavioral-health-business/

PGP co-founder Ezra Simons was recently quoted in Behavioral Health Business in a November 28th story detailing the potential acquisition of Talkspace by telehealth giant Amwell. Ezra commented on the impact of the transaction:

“This deal could signal an increasing trend in the industry towards an all-in-one solution in behavioral health that encompasses all touch points in the patient lifecycle. Additionally, it could indicate a trend of tech/telehealth platforms growing their user base through acquisition of a large patient/provider network. I think we are going to continue to see vertical integration looping behavioral into broader care networks.”

For the full story, please visit the Behavioral Health Business website.

The post Ezra Simons quoted in Behavioral Health Business appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
November 30, 2022 at 11:28AM

‘Practical Dermatology’ covers PGP representation of MetroDerm
https://physiciangrowthpartners.com/media-mentions/practical-dermatology-covers-pgp-representation-of-metroderm/

Practical Dermatology is a “monthly publication that provides coverage of medical care, cosmetic advancements, and practice management for dermatologic clinicians.” Recently the publication’s website covered the Physician Growth Partners’ representation of MetroDerm of Atlanta in its transaction with United Derm Partners.

MetroDerm was founded in 2003 by Dr. Diamondis Papadopoulos. The practice now has more than 30 providers and has become the leading dermatologic practice in the Greater Atlanta area. For more information on this transaction, please read the Practical Dermatology article here.

The post ‘Practical Dermatology’ covers PGP representation of MetroDerm appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
July 25, 2022 at 09:37AM

Becker’s Dental + DSO Review covers NYC Endodontics transaction with Specialty1 Partners
https://www.physiciangrowthpartners.com/media-mentions/beckers-dental-dso-review-covers-nyc-endodontics-transaction-with-specialty1-partners/

Physician Growth Partners recently represented New York City Endodontics in a transaction with Houston-based Specialty1 Partners. Industry publication, Becker’s Dental + DSO Review, published coverage of the transaction in its December 21, 2022 edition. You can read the full article here.

The post Becker’s Dental + DSO Review covers NYC Endodontics transaction with Specialty1 Partners appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com
January 04, 2023 at 11:25AM

Becker’s ASC Review covers PGP representation of Zimm Cataract & Laser Center

https://www.physiciangrowthpartners.com/media-mentions/beckers-asc-review-covers-pgp-representation-of-zimm-cataract-laser-center/

Physician Growth Partners (“PGP”) advised Pennsylvania-based Zimm Cataract & Laser Center on its recent partnership with Sunvera Group, an ophthalmology management services organization. The transaction was detailed in a January 12, 2023 article in Becker’s ASC Review, which is just one of several newsletters that Becker’s publishes for various medical specialties.

You can read the full article at this link on the Becker’s website.

The post Becker’s ASC Review covers PGP representation of Zimm Cataract & Laser Center appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com

January 19, 2023 at 10:37AM

PGP advisor Andrew Holm quoted in Behavioral Health Business article on CVS investments

https://www.physiciangrowthpartners.com/media-mentions/pgp-advisor-andrew-holm-quoted-in-behavioral-health-business/

Andrew Holm, who has been a transaction advisor with Physician Growth Partners since 2018, was quoted extensively in a recent Behavioral Health Business article titled, “CVS Places Bets on Array, Carbon. What Does That Mean for Its Future Behavioral Health Efforts?”

Andrew commented on the status of the behavioral health market and the strategy behind CVS’s recent moves:

“Large payers, health systems and retail giants are all seeing the same tailwinds in the behavioral space. Behavioral care is perhaps the most suited to digital and telehealth deployment of all medical specialties, and there is a huge need nationally. Any company able to provide a solution to the care access problem will quickly become a leader in the space. CVS hasn’t historically had a robust behavioral solution, so investment in the space is a logical expansion of their capabilities and service offering.”

Andrew has served as a board observer to two behavioral health businesses that PGP has invested in. He has also worked with several psychology and counseling practice transactions involving private equity. To read the full article, please visit the Behavioral Health Business website at this link.

The post PGP advisor Andrew Holm quoted in Behavioral Health Business article on CVS investments appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com

January 19, 2023 at 01:08PM

PGP CEO Michael Kroin quoted in Crain’s Chicago Business article on Midwest Orthopaedics at Rush

https://www.physiciangrowthpartners.com/media-mentions/pgp-ceo-michael-kroin-quoted-in-crains-chicago-business-article/

Physician Growth Partners CEO Michael Kroin was quoted in a Crain’s Chicago Business article about the recently-announced partnership between Midwest Orthopaedics at Rush and Rockford Orthopedic Associates. The article by Jon Asplund, titled “Midwest Orthopaedics at Rush partnering with outside clinic,” covered not only this specific deal, but also the issue of medical practice consolidation:

There are basically two routes for physicians to take when looking at how they’ll practice, said Michael Kroin, CEO and managing partner at Chicago-based Physician Growth Partners: either they are independent practitioners or hospital employees. Being a hospital employee provides a doctor with job security, infrastructure and the appropriate amount of support a doctor may need, Kroin said. “But you don’t see that entrepreneurial spirit or the feeling that you are driving the direction of the organization.”

The article also examined how, when doctors are making calculations on how to practice, they are increasingly turning to a partnership with private equity. The article ended with a Kroin’s defense of this trend:

For orthopedic specialists, nationwide, the influence of private equity is growing, and raising alarms, Kaiser Health News reports. Kroin, whose firm represents independent physician groups in transactions with private equity, pushes back on that notion. He says that doctors are facing financial pressure on every side, including from both large insurers and large health systems, and that private equity is one way to get the capital to grow, survive and be able to compete. “What is wrong with tapping private equity? If you can structure the deal right, there’s nothing in any contract that says you have to see more patients,” he said. Like other models, Kroin said, private equity makes its money by providing the capital and infrastructure to help physicians practices and revenue grow.

To read the full article, please visit the Crain’s Chicago Business website at this link. A subscription is required.

The post PGP CEO Michael Kroin quoted in Crain’s Chicago Business article on Midwest Orthopaedics at Rush appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com

January 24, 2023 at 03:23PM

Becker’s ASC Review covers PGP representation of Chicago-based UroPartners

https://www.physiciangrowthpartners.com/media-mentions/beckers-asc-review-covers-pgp-representation-of-chicago-based-uropartners/

UroPartners LLC, a 90-provider urology clinic based in the Chicago area, recently completed a partnership agreement with Solaris Health Partners (“Solaris”), and Physician Growth Partners (“PGP”) acted as UroPartners’ exclusive advisor during the transaction. Details of the new partnership were outlined in a February 6, 2023 article in Becker’s ASC Review.

According to the article, the transaction, which tied the largest independent urology practice in the US with the largest private equity-backed urology platform, was concluded in less than six months time. The article added that, “the transaction included an ASC, in-house lab, two linear accelerators and an in-office dispensary. Through the partnership, President and CEO of UroPartners, Richard Harris, MD, will serve as chief strategy officer for Solaris.”

The post Becker’s ASC Review covers PGP representation of Chicago-based UroPartners appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com

February 14, 2023 at 03:41PM

PGP CEO Michael Kroin is guest on The Ortho Show podcast

https://www.physiciangrowthpartners.com/media-mentions/pgp-ceo-guest-on-the-ortho-show-podcast/

Physician Growth Partners CEO and Managing Partner Michael Kroin is the guest on today’s edition of THE ORTHO SHOW with Dr. Scott Sigman. Since 2019 Dr. Sigman has been sharing “stories from the world of orthopedics” with a growing audience.

In this latest show, Dr. Sigman and Michael Kroin talk about the role PGP plays in private equity deals, how doctors can find the perfect firm to work with, Michael’s career in healthcare private equity, and much more.

Click on the graphic below or listen to THE ORTHO SHOW at Apple Podcasts, Google Podcasts, Spotify, Stitcher and other podcast platforms.

The post PGP CEO Michael Kroin is guest on The Ortho Show podcast appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com

February 24, 2023 at 07:29AM

Becker’s ASC Review, Healthcare Dealflow, and Yahoo! Finance cover Precision Ortho deal

https://www.physiciangrowthpartners.com/media-mentions/beckers-covers-precision-ortho-deal/

Physician Growth Partners (“PGP”) recently represented Precision Orthopaedics in a private equity transaction with Ortho Alliance. The details of the deal were covered by a number of financial and industry publications including Becker’s ASC Review, Healthcare Dealflow, and Yahoo! Finance.

Precision Ortho has three offices and one multi-specialty surgery center in Northeast Ohio. Their team is comprised of more than 10 physicians and 50+ staff.

The post Becker’s ASC Review, Healthcare Dealflow, and Yahoo! Finance cover Precision Ortho deal appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com/

April 06, 2023 at 08:24AM

PGP co-founders publish article in “Chicago Medicine”

https://www.physiciangrowthpartners.com/media-mentions/pgp-publishes-article-in-chicago-medicine/

Physician Growth Partners’ co-founders Michael Kroin and Ezra Simons recently published an article titled, “When Private Equity Makes an Offer; What Should I Do?” It was included in the April issue of Chicago Medicine magazine, a publication distributed each month by the Chicago Medical Society.

The article discusses what private equity firms are looking for in an investment, how transaction advisors like PGP can help physician practices, and the alternatives to private equity partnerships.

The post PGP co-founders publish article in “Chicago Medicine” appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com/

April 21, 2023 at 06:29AM

“Fierce Healthcare” publishes PGP article on how PE investment helps doctors

https://www.physiciangrowthpartners.com/media-mentions/fierce-healthcare-publishes-pgp-article/

An article by Physician Growth Partners’ co-founders Michael Kroin and Ezra Simons was published recently by Fierce Healthcare. Titled “Private equity investment in healthcare is making a positive impact … especially for doctors,” the April 28th article examines the growing investment that private equity has made in U.S. healthcare practices; making the case that “although this activity is reported on and sometimes scrutinized, less often is any focus given to the positive impact that this inflow of capital has had, both for doctors and patients.”

Dr. Matthew Zimm, a Pennsylvania ophthalmologist, concluded a private equity partnership in 2022 with PGP’s assistance. In the article he is quoted as saying the benefits of this transaction for a practice like his are clear. “… trends in the healthcare market suggest that private independent practices are not the future. Doctors faced with the increasing complexity of practice have the choice to join a health system or work with a Managed Services Organization (MSO). My peers have had way better experiences working this way (with an MSO) and so far I am also.”

Fierce Healthcare is an online publication of Questex Media and has more than 300,000 monthly viewers at its website — www.fiercehealthcare.com

The post “Fierce Healthcare” publishes PGP article on how PE investment helps doctors appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com/

April 29, 2023 at 12:07PM

PGP co-founders ask “Private Equity Investment in Health Care —Is it Positive for Doctors?”

https://www.physiciangrowthpartners.com/media-mentions/private-equity-investment-in-health-care-is-it-positive-for-doctors/

Physician Growth Partners (“PGP”) co-founders Michael Kroin and Ezra Simons recently published an article in Modern Aesthetics magazine asking the question, “Private Equity Investment in Health Care —Is it Positive for Doctors?” The article talked about how private equity investment in health care practices is affecting patients and payers, “but what about the physicians?” It featured interviews with PGP clients who have concluded private equity transactions and also cited data from the American Investment Council, Pitchbook, the JAMA Health Forum, Medscape.com, and America’s Health Insurance Plans.

Dr. Matthew Zimm, a Pennsylvania ophthalmologist who concluded a PE partnership in 2022, was quoted in the article. He said, “In the end, this is an individual decision. It is not for everyone, but trends in the health care market suggest that private independent practices are not the future. Doctors faced with the increasing complexity of practice have the choice to join a health system or work with a managed services organization (MSO). My peers have had way better experiences working this way (with an MSO) and so far I am also.”

Modern Aesthetics is published six times each year by Bryn Mawr Communications. You can see the latest issue at www.modernaesthetics.com

The post PGP co-founders ask “Private Equity Investment in Health Care —Is it Positive for Doctors?” appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com/

May 10, 2023 at 01:10PM

Behavioral Health Business covers Silver Lake Psychology transaction

https://www.physiciangrowthpartners.com/media-mentions/behavioral-health-business-covers-silver-lake-psychology/

Behavioral Health Business recently published an May 16th article titled, “ARC Health’s Acquisition of Silver Lake Psychology Marks Shift to Larger Mental Health Practices.” This article talks in detail about the new partnership between ARC Health, which is a unit of Thurston Group, and Silver Lake Psychology, which is a Physician Growth Partners client.

The article by Chris Larson stated, “ARC Health continues its blistering dealmaking spree with the acquisitions of Los Angeles-based Silver Lake Psychology and Denver Wellness Associates. The two deals mark the fifth and sixth acquisitions of the private-equity-backed mental health platform company in 2023 alone. Silver Lake Psychology is the largest firm acquired so far and indicates a focus on larger practices in the future, ARC Health CEO Vince Morra told Behavioral Health Business.”

The article continued by quoting Silver Lake’s founder, Dr. Brandy Engler, in a statement taken from PGP’s press release about the transaction. “We’re confident that the team at ARC can help us expand and take Silver Lake Psychology to the next level.” This is the third behavioral health deal that PGP has completed in the past year.

Behavioral Health Business is an independent source for breaking news and up-to-date information on the mental health and addiction recovery industry. The publication is based in Chicago and owned by Aging Media Network.

The post Behavioral Health Business covers Silver Lake Psychology transaction appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://www.physiciangrowthpartners.com/

May 17, 2023 at 11:24AM

PGP Managing Partner Ezra Simons Discusses Private Equity Investment in Elective Medical Practices with OptiCall
https://physiciangrowthpartners.com/media-mentions/pgp-managing-partner-ezra-simons-discusses-private-equity-investment-in-elective-medical-practices-with-opticall/

April 13, 2022

Physician Growth Partners (“PGP”) Managing Partner Ezra Simons recently spoke with OptiCall’s Expert Q&A blog about private equity investment in elective medical practices. He focused on answering three key questions that many providers thinking about entering a transaction may ask:

WHEN DOES IT MAKE SENSE TO THINK ABOUT SELLING A MEDICAL PRACTICE?

WHAT SHOULD YOU CONSIDER WHEN ENTERING A PARTNERSHIP WITH A PE FIRM?

WHAT ARE THE MAJOR PITFALLS OR RED FLAGS TO AVOID?

To read the full article, visit the OptiCall website at https://www.opticall.com/private-equity-elective-medical-practice/

The post PGP Managing Partner Ezra Simons Discusses Private Equity Investment in Elective Medical Practices with OptiCall appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
April 22, 2022 at 11:54AM

PGP Serves as Transaction Advisors for Arizona Eye Institute & Cosmetic Laser Center
https://physiciangrowthpartners.com/healthcare-ma/pgp-serves-as-transaction-advisors-for-arizona-eye-institute-cosmetic-laser-center/

In June 2020, Physician Growth Partners (PGP) advised Arizona Eye Institute & (Arizona Eye) and its subsidiaries in a sale to Eyecare Partners (ECP). This strategic acquisition bolsters the footprint for EyeCare Partners across the broader Phoenix market.

Who is Arizona Eye?

Arizona Eye is a leading ophthalmology group based in the Northwest Phoenix market led by Dr. Emilio Justo, along with four associates across three locations and a surgery center.  Arizona Eye has been in operation for over 30 years and has deep ties to the Northwest Phoenix market with a reputation for clinical excellence. Dr. Justo began exploring partnership opportunities as he recognized an inflection point in the business’ path. With a strategic partner, the business is able to tap new markets and expertise to execute Dr. Justo’s vision.

Why PGP? 

PGP offers unmatched experience, market knowledge and relationships across the specialty physician space. Our deep, and successful track record includes transactions in a multitude of specialties including ophthalmology, dermatology, pain management, gastroenterology, ENT, urology, and orthopedics, among others, all with different transaction goals and shareholder structures. PGP has dealt with and successfully overcome all of the hurdles that can occur when going through a transaction process. PGP supplements its experience in the space with unparalleled access to senior leadership throughout the entirety of the transaction process. We emphasize transparent communication, and a constant focus on ensuring the founding physician’s specific goals are met. Through a blend of experience and differentiated service, PGP believes it provides superior advisory services for independent physicians interested in pursuing a transaction with private equity.  

Combating a National Pandemic

Navigating a transaction process during a national pandemic presented its own set of challenges, however, PGP remained unwavering in its approach in order to ensure an optimal outcome for Arizona Eye. Leveraging past experience and market knowledge throughout the negotiation process allowed for swift execution that drastically reduced timelines. Additional diligence and support was necessary to provide comfort that short term circumstances wouldn’t affect long-term goals, and ultimately allowed the business’ medical mission to stay intact.

Choosing Eyecare Partners

Arizona Eye ultimately chose Eyecare Partners (ECP), a national eye care leader backed by the Partners Group. Arizona Eye recognized the cultural fit along with the leadership and support from EyeCare Partners in continuing to develop the leading eye care platform in the Phoenix market.

For more information, please contact Michael Kroin, the Managing Partner of Physician Growth Partners at [email protected]

Read the Press Release (PDF download):
Physician Growth Partners Advises Arizona Eye Institute & Cosmetic Laser Center in an Acquisition by EyeCare Partners

 

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
July 21, 2020 at 02:18PM

PGP Serves as the Exclusive Transaction Advisor for Corrective Eye Center
https://physiciangrowthpartners.com/healthcare-ma/pgp-serves-as-the-exclusive-transaction-advisor-for-corrective-eye-center/

In August 2020, Eyecare Partners (ECP) acquired Corrective Eye Center (Corrective Eye). Physician Growth Partners (PGP) served as the exclusive transaction advisor to Corrective Eye. This strategic acquisition strengthens EyeCare Partners’ growing footprint across the Northeast Ohio market.

Who is Corrective Eye?

Corrective Eye is a well-known ophthalmology group based in the greater Cleveland market.  Led by Dr. Samuel Salamon and Dr. Greg Louis, Corrective Eye brings two associate physicians across three locations and a surgery center. Corrective Eye was founded nearly 40 years ago and has deep ties in the region. Dr. Salamon explored a strategic partnership as he wanted to usher in Corrective Eye’s next chapter of growth.

Why PGP?

PGP offers incomparable experience, market expertise, and relationships across the specialty physician sector. Our extensive, and successful track record includes transactions in a vast array of specialties including ophthalmology, dermatology, pain management, gastroenterology, ENT, urology, and orthopedics, among others, all with various transaction goals and shareholder structures. PGP has dealt with and successfully navigated the challenges that occur when going through a transaction process. PGP complements its background in the field with unmatched access to senior leadership throughout the entirety of the transaction process. We emphasize transparent communication, and a constant focus on ensuring the shareholders’ goals are met. Through a combination of deep experience and a premium, differentiated service, PGP provides superior transaction advisory services for independent physicians interested in pursuing a transaction with private equity.

Navigation a Transaction Through the COVID-19 Pandemic

In order to achieve an optimal outcome, PGP remained laser-focused on partnership dynamics and working with both parties to ensure all needs are met. Corrective Eye represents PGP’s 2nd ophthalmology transaction to close during the COVID-19 pandemic. By utilizing past experience and market knowledge throughout the negotiation process, PGP was able to execute swiftly, exceeding shareholder expectations. Additional diligence and support were crucial in providing comfort that the effects of the pandemic would be short-lived and would not affect long-term goals or growth strategy.

Choosing Eyecare Partners

EyeCare Partners has a demonstrated track record of scaling eye care businesses by building out a vertically integrated clinical model. Corrective Eye sought a partner who has both significant management expertise and a consistent track record of growth. Drs Salamon and Louis look forward to expanding and growing their practices with the assistance of Eyecare Partners.

For more information, please contact Michael Kroin, Managing Partner of Physician Growth Partners at [email protected].

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
August 25, 2020 at 08:45AM

Medical Practice M&A: Merger and Acquisition
https://physiciangrowthpartners.com/healthcare-ma/medical-practice-merger-and-acquisition/

There has been a significant rise in private equity acquisitions of single-specialty medical practices over the past decade, with an extreme focus in Dentistry, Dermatology, and Ophthalmology. More recently, Pain Management, Urology, Gastroenterology, Women’s Health, ENT, and Orthopedics have come into focus.

Although physicians have many options, a transaction to private equity has become the most common route for physicians looking for an exit opportunity or succession plan, especially one that can create meaningful economic liquidity. As physicians consider their exit strategy for their practice, it is pertinent that they are well-informed on the current market environment.

Doctors are considering the private equity option for many reasons. Practice management and business operations have become increasingly complex and more time-consuming. From navigating labor laws to negotiating reimbursement rates, providers have found themselves spending less and less time practicing medicine. The COVID pandemic has only further shed light on the added stress of running a business’s day-to-day operations. As private equity consolidation continues to sweep across the United States, physician leaders must become more educated and better equipped to assess partnership opportunities.

Who is participating in the medical practice space?

Over the past several years, there has been an increasing number of private equity firms participating in healthcare M&A transactions. Much of this increased investment in healthcare is driven by the current macroeconomic environment with record low interest rates, a prolonged bull-market, and record levels of uninvested capital spurring a rise in acquisitions in the significantly profitable healthcare services sector. As more firms compete for similar deals, physicians have reaped the benefits of continued favorable valuation multiples. These private equity firms allocate money across the entire spectrum of healthcare specialties, including ophthalmology, urology, gastroenterology, dermatology, pain management, and, most notably, dentistry.

Notable investments include Goldman Sachs acquisition of MyEyeDr, Audax Group’s acquisition of United Urology Group, Waud Capital’s acquisition of GI Alliance, and NexPhase Capital’s acquisition of Clearway Pain Solutions. Dental consolidation, which has been ongoing for a longer time than other specialties, has seen Heartland Dental trade on three separate occasions, most recently acquired by global private equity firm KKR in 2018. The aforementioned platforms’ success continues to drive interest in the space, as other groups seek to replicate their results. The combination of a favorable investment environment and increased competition has resulted in physicians receiving historically high investment valuations.

Why is Private Equity participating in physician practice mergers and acquisitions?

Private equity firms historically shied away from investing in single-specialty medicine practices due to the healthcare industry’s complexity and regulation. However, in the last 15 years, there has been a significant uptick in physician practice M&A activity. This change in mindset has been driven by solving the complexities of early private equity success demonstrated in dentistry and dermatology. Heartland Dental was founded in 1997, with only one office. After 15 years of internal growth, in 2012, the Ontario Teachers’ Pension Plan took a majority investment in Heartland. At the time, Heartland consisted of 397 practices across 21 states. Following growth initiatives implemented by Ontario Teachers, in 2017, annual revenues were estimated to be $1.3 billion, more than doubling revenues when Ontario Teachers first made their investment. In March 2018, KKR, one of the largest private equity groups globally, acquired a majority interest from Ontario Teachers. Heartland Dental has since grown to over 1,000 dental practices across nearly 40 states. Forefront Dermatology is a further case study of how private equity groups can exponentially increase a physician practice’s growth.

Forefront was founded in 2001, and the platform first took private equity investment from Varsity Healthcare Partners in May 2014. At the time, Forefront operated 40 clinics across four states in the Midwest. In February 2016, Varsity sold its majority stake to OMERS Private Equity. At the time of OMERS investment, Forefront operated 80 clinics across 11 states in the Midwestern and Mid-Atlantic region. OMERS has since developed and scaled the platform, and currently, Forefront operates more than 130 clinics across 16 states. Through the right growth strategy and cultural fit with a private equity partner, physician platforms can scale at exponential rates. Private equity groups typically look to scale physician platforms in a 5-7 year cycle before selling the platform, recognizing a healthy return on investment. Private equity investors continue to be attracted to physician specialties that benefit from an aging population, supply and demand imbalance, increasing prevalence of chronic conditions, and a healthy mix between medical procedures, while still maintaining a cash-pay component.

Practices that lead with quality care while maintaining the full scope of services, diversification, scale, and infrastructure ease investment risk for private equity groups and are especially attractive.

What is private equity’s physician practice strategy?

Private equity firms have maintained a “platform-based” strategy. This strategy is characterized by firms making a large initial investment with a regionally-dominant practice that can be utilized as an anchor, followed by add-on investments in smaller practices to quickly establish multi-state and regional dominance. The idea is to build scale while recognizing synergies driven by geographic proximity. Another prevalent strategy for investor groups is to acquire strong, clinically-excellent practices all across the country, regardless of location, establishing a brand known for exceptional patient outcomes.

Many physicians are worried about the prospect of private equity interfering and affecting patient experience while dictating to the physician how to practice medicine. The majority of private equity firms are aware of this risk. Instead, they aim to remain in the background, working to eliminate inefficiencies and drive synergies, while allowing physicians to take leadership roles and remain fully committed to patient care. For this reason, investors seek to provide capital and invest in physicians that are strong leaders and those that have impeccable reputations. Cultural fit is one of the most underrated yet essential parts of picking a private equity partner. To ensure a physician practice’s continued success, there must be strategic alignment and mutual respect between the parties involved. To best ensure this happens, physicians need to explore and exhaust all of their options. Not all private equity firms conduct business the same way, and it is essential to be comfortable with the partner you have entrusted to grow your practice. Advisors have intimate working relationships with all major platforms and healthcare private equity groups and have insights into how each private equity firm attempts to grow following an acquisition.

How does a trusted advisor drive value in physician practice mergers and acquisitions?

Advisors can provide tremendous value when deciding to sell your practice. A trusted advisor can elicit your business’s highest values while simultaneously assisting in identifying private equity firms that will be a cultural fit that achieves your succession plans. Physician Growth Partners offers unparalleled transaction advisory services, drawing significant experience from the successful sale of 20+ physician practices over the past three years, along with countless conversations with industry leaders. The founding partners of PGP have worked with many health care specialties across all regions of the US. We are extremely dedicated to providing impeccable service, ensuring that each and every one of our clients receives an outsized outcome. Physician Growth Partners differentiates itself from its competitors with its leadership teams’ constant involvement throughout the duration of your transaction process – this ensures that the story of the business isn’t compromised, and your goals are met.

What does the Medical Practice transaction process look like?

If you want to learn more about the marketplace and what a potential transaction would look like, we invite you to schedule a phone call with our team. Over the phone, we’ll learn about your goals as a physician owner and determine if we are the right advisor to help you reach those goals.

If you do decide to undertake a transaction process, the typical time is around 6-9 months. In the initial stages, we will gather historical data from your practice, beginning with a series of phone calls to discuss the story behind your business, while understanding your motivation for wanting to engage in a sale. Our team will then carefully craft marketing materials to display the company’s full picture to prospective private equity buyers with past acquisitions in the physician practice sector.

Through intimate conversations with the majority of private equity firms interested in healthcare services, we are acutely aware of the relevant firms that would be interested in your business, so we can better run an efficient process. Following a few discussions with these firms, they will place an initial range on your practice’s enterprise value. We work with you to narrow the list to the firms we feel offer the best partnership and value combination. Selected firms will then meet with you and visit the practice’s facilities to get a full picture of the business.

Physician Growth Partners will then work with the shareholders to select a partner from this select group that offers the perfect combination of value while maintaining the right strategic fit. Following weeks of due diligence from both parties, the transaction will close.

The Healthcare M&A landscape is continually evolving, and it is crucial to select an advisor with experience navigating the many hiccups that can occur in the due diligence and closing process.

How are physician groups effected following a transaction?

If you want to learn more about the marketplace and what a potential transaction would look like, we invite you to schedule a phone call with our team. Over the phone, we’ll learn about your goals as a physician owner and determine if we are the right advisor to help you accomplish them.

If you decide to undertake a transaction process, the typical timeline is around 5-7 months. In the initial stages, we will gather historical data from your practice, beginning with a series of phone calls to discuss the story behind your business, while understanding your motivation for wanting to engage in a sale. Our team will then carefully craft marketing materials to attract prospective private equity buyers.

Through intimate conversations, relationships, and past transactions with the majority of private equity firms interested in health care services, we are acutely aware of the relevant firms that would be interested in your business, so we can better run an efficient process.

Following discussions with the relevant private equity firms, we instruct the group of buyers to formally submit an initial offer for your practice. Once we receive the offers, we work with you to narrow the list of firms that we feel offer the best combination of partnership and value. Selected buyers will then meet with you and visit the practice’s facilities to get a full picture of the business. This is also the opportune time to learn more about the selected buyer’s strategy, experience, relationships, and goals.

Once the meetings are complete, Physician Growth Partners will request the parties to submit a Letter of Intent (LOI) or final offer.

We will work with the shareholders to select a partner from this select group that offers the perfect combination of value while maintaining the right strategic fit. Following a period of exclusive confirmatory due diligence from both parties, the transaction will be in a position to consummate.

The Healthcare M&A landscape is constantly evolving, and it is crucial to select an advisor with experience navigating the many hiccups that can occur in the due diligence and closing process.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
October 13, 2020 at 10:24AM

PGP Serves as the Exclusive Transaction Advisor for Urology America
https://physiciangrowthpartners.com/transaction-advisors/pgp-serves-as-the-exclusive-transaction-advisor-for-urology-america/

In October of 2020, Urology Austin and its affiliated businesses (collectively “UA” or the “Company”) formed a partnership with Gauge Capital to develop Urology America, a newly formed platform aimed at creating a best in class urology platform with a national footprint. PGP served as the exclusive transaction advisor to Urology Austin throughout the process that was navigated amidst the COVID-19 pandemic.

 

 

Competitive Process With Defined Goals

 

PGP utilized a targeted yet comprehensive process to help Urology Austin find an ideal partner. From the outset, the Company, its shareholders, and management team clearly defined what they were looking to achieve, and what the right partner would bring to Urology Austin in order to help them achieve their strategic vision. PGP approached only the most sophisticated private equity firms in the healthcare space, with proven track records. Working on the Company’s behalf, PGP emphasized partnership as a factor equally important as economics. Through structured meetings with selected parties, detailed questionnaires built by PGP, and extensive vetting of references, PGP was able to put Urology Austin in a position to explore the partnership opportunity with a number of groups that have been highly successful in the space. The result of the transaction process was a fantastic outcome for the shareholders today, while establishing a platform poised for rapid, widespread success down the road.

 

Why PGP?

 

A business with the scale of Urology Austin and defined growth trajectory did not lack suitors hoping to advise them through their partnership process. UA’s decision to engage Physician Growth Partners stemmed from our constant, senior level involvement in the transaction, along with our tireless approach of ensuring shareholders are as educated as possible on every single component of the deal. Urology Austin had a clear focus on finding a partner that would enable them to scale from a regionally dominant platform to a national leader. PGP knew it could utilize its experience and articulate their growth goals to the buyer universe, while simultaneously ensuring the shareholders were perpetually informed to a level where they could make the most educated decision possible.

Speaking on the transaction process, Patrick Murphy, former CEO of Urology Austin commented, “Our entire transaction process with PGP has been outstanding. I’ve worked with countless advisors over my almost 30 years in healthcare on M&A transactions, and never has one been so involved as Michael and the PGP team. What impressed me the most was their interest in learning our business from top to bottom to ensure everything was covered properly throughout the deal. They were with us every step of the way from beginning to end. Their diligence and assistance in navigating through the issues gave us the assurance the outcome we achieved was a success.”

 

Managing External Circumstances

 

Every transaction has obstacles and challenges; executing a transaction of this size while navigating the COVID-19 pandemic was uncharted territory. PGP methodically pressed hold on the process at the beginning of the pandemic, advising Urology Austin to continue only once there was a clear line of sight on returning to pre-COVID performance. PGP worked with management throughout the holding period to ensure it could put itself in that position as efficiently as possible while not lowering clinical care expectations. Without the patience the group collectively decided to maintain, there would have been significant exposure from not only a value perspective, but when looking at the go-forward terms on the newly established platform. With PGP’s guidance, the Company successfully emerged from the pandemic and was able to complete a transaction that delivered value, structure, and governance ensuring the platform was well positioned to become a national, best-in-class, urological platform.

Speaking on the outcome of the process and navigation of the pandemic, Michael Kroin, Managing Partner of Physician Growth Partners, added “PGP is incredibly pleased with the outcome achieved in Urology Austin’s transaction process. The shareholders had the preeminent regional platform and were ready to replicate it at the national level. Finding the right partner with whom they could accomplish this level of growth was no easy task. The Company’s trust in PGP allowed us to both work quickly and get creative on how we could get a deal done in uncertain times. We believe the deep emphasis on partnership throughout allowed the group to form a platform that can rapidly scale at the national level while maintaining clinical excellence in the Urology space.”

 

Strong Partner Prepared to Take the Platform to the Next Level

 

Gauge Capital and its operating partners have a deep track record of building healthcare businesses. They clearly understand and are aligned with Urology Austin’s ambition to be a national, clinically leading urological platform. They are focused on empowering the current clinical and management team while identifying like minded groups around the country that would be a strategic fit to join the Company’s mission.

In a specialty that is still early in the consolidation wave, the Company has the ability to be a first mover and thought leader. Through its new partnership with Gauge Capital, Physician Growth Partners expects Urology America to become a leading strategic option for independent urology groups across the country, ultimately achieving the ambitious business and clinical goals they have laid out for themselves.

 

For More Information, please contact Michael Kroin, the Managing Partner of Physician Growth Partners at

[email protected]

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
November 12, 2020 at 09:04AM

Women’s Health Market Update
https://physiciangrowthpartners.com/healthcare-ma/womens-health-market-update/

Women’s Health is a relatively new sector of interest for private equity groups (the first investment from private equity was Are’s partnership with Unified Women’s Healthcare in 2013 before investment halted until 2017). In a short period of time, the industry has seen rapid consolidation with nearly 70% of acquisitions to date occurring in 2020 or 2021 (showing resiliency amidst a global pandemic).

The considerable acceleration of transaction activity has created a rapidly closing window for groups to be “first movers” in their market. Platform acquisitions have been coupled with many add-on acquisitions as existing platforms look to increase regional density and expand into new geographies.

Recent Transaction Activity in Women’s Health

Date

Target

PE Sponsor

Platform

State

February 2021

Together Women’s Health

Shore Capital Partners

 

MI

January 2021

Care First

Audax Group

Axia Women’s Health

NJ

December 2020

Women’s Care Enterprises

BC Partners

 

FL, CA, KY

December 2020

Desert Perinatal Associates

Sverica Capital

Women’s Health USA

NV

December 2020

Mid Atlantic Women’s Care

Atlas Partners

Unified Women’s Healthcare

VA, NC

December 2020

Unified Women’s Healthcare

Atlas Partners

 

12 States

November 2020

Women’s Health Group

Shore Capital Partners

 

CO

September 2020

Women’s Health USA

Sverica Capital

Women’s Health USA

NV

September 2020

Women’s Health Associates of Southern Nevada

Sverica Capital

Women’s Health USA

NV

June 2020

Reiter, Hill, Johnson & Nevin

Assured Healthcare Partners

Advantia Health

DC, MD, VA

June 2020

Seven Hills Women’s Health Centers

Audax Group

Axia Women’s Health

OH

March 2020

Seven Hills OB-GYN Associates

Audax Group

Axia Women’s Health

OH

March 2020

Rubino OB/GYN Group

Audax Group

Axia Women’s Health

NJ

January 2020

Southern California Reproductive Center

Lindsay Goldberg

Women’s Care Enterprises

CA

January 2020

Oceanside OB/GYN

Audax Group

Axia Women’s Health

NJ

January 2020

Advantia Health

Assured Healthcare Partners

 

IL, MD, MO, VA,

January 2020

Women’s Health of Central Massachusetts

Sverica Capital

Women’s Health USA

MA

November 2019

OB/GYN of Indiana

Audax Group

Axia Women’s Health

IN

October 2019

Palm Beach OB-GYN

Lindsay Goldberg

Women’s Care Enterprises

FL

January 2019

London Women’s Care

Lindsay Goldberg

Women’s Care Enterprises

FL

August 2017

Women’s Health USA

Sverica Capital

 

CT

May 2017

Women’s Care Florida

Lindsay Goldberg

 

FL

January 2017

Axia Women’s Health

Audax Group

 

NJ, PA

Despite the heightened deal activity in the last year, there is still considerable opportunity in the industry with private equity still in the early innings of consolidation within the women’s health sector. The opportunity remains very strong for groups interesting in pursuing partnerships with private equity to achieve their goals and succession plans.

The post Women’s Health Market Update appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
April 30, 2021 at 12:43PM

Oral Surgery Market Update
https://physiciangrowthpartners.com/healthcare-ma/oral-surgery-market-update/

Private equity consolidation in Oral Surgery is very new compared to other sectors. There are currently just five active platforms (the first investment from private equity was Riverglade Capital’s investment in U.S. Oral Surgery Management in 2018). With a focus to replicate the success seen within the dental vertical, we are seeing considerable momentum toward private equity investments within oral surgery.

In just the last 24-months, four out of the five oral surgery platforms have been established. As new platforms are established, the “add-on” market continues to grow as platforms look to establish a presence in new geographies and increase regional density around existing locations.

The success of “first movers” in the market such as Oral Surgery Partners and U.S. Oral Surgery Management has sparked significant interest in this sector and transaction volume has followed accordingly. While deal volume has increased significantly over the last 18-months, this sector is still in the early innings of consolidation with many regions in the U.S. still presenting vast ‘white space’ opportunities for successful private equity partnerships.

Select Recent Transaction in the Oral Surgery Space

Date

Target

Platform

PE Sponsor

State

April 2021

Atlantic Oral Surgery and Implant Center

U.S. Oral Surgery Management

Riverglade Capital/Thurston Group

South Carolina

January 2021

Four California Based Practices

Allied OMS

DuneGlass Capital

California

December 2020

North Valdosta Oral & Maxillofacial Surgery

U.S. Oral Surgery Management

Riverglade Capital/Thurston Group

Georgia

December 2020

Atlanta Oral & Facial Surgery & Bay Area Oral Surgery

Beacon Oral Specialists

Blue Sea Capital

Georgia

October 2020

Oral & Maxillofacial Surgery

U.S. Oral Surgery Management

Riverglade Capital/Thurston Group

Georgia

September 2020

Rolla Oral Surgery & Periodontics

Oral Surgery Partners

Sheridan Capital

Missouri

September 2020

Greenville Oral Surgery

Oral Surgery Partners

Sheridan Capital

Illinois

September 2020

Columbia Oral & Maxillofacial Surgery

Oral Surgery Partners

Sheridan Capital

South Carolina

September 2020

Bloomington Oral Surgery

Oral Surgery Partners

Sheridan Capital

Indiana

August 2020

Oral Surgery Associates & Dental Implant Centers

U.S. Oral Surgery Management

Riverglade Capital/Thurston Group

Georgia

July 2020

Evergreen Oral Surgery

Allied OMS

DuneGlass Capital

Colorado

July 2020

Fort Worth Oral Surgery

Allied OMS

DuneGlass Capital

Texas

January 2020

Metropolitan Oral & Maxillofacial Surgery

U.S. Oral Surgery Management

Riverglade Capital/Thurston Group

Georgia

October 2019

Clark Homes Oral & Facial Surgery of Alabama

U.S. Oral Surgery Management

Riverglade Capital/Thurston Group

Alabama

October 2019

Dakota Valley Oral & Maxillofacial Surgery

U.S. Oral Surgery Management

Riverglade Capital/Thurston Group

Minnesota

October 2019

Oral & Maxillofacial Surgical Specialists

U.S. Oral Surgery Management

Riverglade Capital/Thurston Group

Tennessee

September 2019

South Oral & Maxillofacial Surgery

U.S. Oral Surgery Management

Riverglade Capital/Thurston Group

Tennessee

September 2019

Oral Surgery Partners

Oral Surgery Partners

Sheridan Capital

MO, IL, IN, SC

August 2019

Oral and Facial Surgery Associates of GA

U.S. Oral Surgery Management

Riverglade Capital/Thurston Group

Georgia

The post Oral Surgery Market Update appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
April 30, 2021 at 12:54PM

Orthopedics Market Update
https://physiciangrowthpartners.com/uncategorized/orthopedics-market-update/

A relatively new sector to experience the wave of private equity investment, orthopedics has begun to show signs of being the next ‘hot sector’. Sharing similar qualities to other successfully consolidated specialties such as dermatology and ophthalmology, a mixture of provider fragmentation, high infrastructure costs (surgical hospitals, imaging, etc.), and profitable ancillary services, has orthopedics on the forefront of many private equity minds.

With only 12 existing platforms, the industry is still ripe for groups around the country to capitalize on a first-mover advantage. Many major metro markets remain untouched by private equity,  creating an opportunity for forward-thinking orthopods to partner with private equity sponsors to be in the driver’s seat of consolidation in their region.

Select Recent Private Equity Transactions in the Orthopedic Space

Date

Target

Platform

PE Sponsor

State

March 2021

Jackson Anesthesia Pain Center

US Orthopaedic Partners

FFL Partners

Mississippi

March 2021

Oxford Orthopaedics

US Orthopaedic Partners

FFL Partners

Mississippi

February 2021

Orthopaedic Associates of Manhasset

Spire Orthopedic Care

Kohlberg & Company

New York

January 2021

Bluegrass Orthopedics

Bluegrass Orthopedics

Trivest Partners

Kentucky

January 2021

Center for Bone & Joint Surgery of the Palm Beaches

HOPco

Linden Capital

Florida

December 2020

US Orthopedic Alliance

USOA Orthopedic Alliance

Castleford Capital

California

September 2020

Mississippi Sports Medicine

US Orthopedic Partners

FFL Partners

Mississippi

August 2020

OrthoCincy

OrthoAlliance

Revelstoke Capital

Ohio

August 2020

Reconstructive Orthopaedics & Sports Medicine

OrthoAlliance

Revelstoke Capital

Ohio

February 2020

Tallahassee Orthopedic & Sports Physical Therapy

Confluent Health

Partners Group

Tennessee

January 2020

Precision Orthopedics & Sports Medicine

Precision Orthopedics & Sports Medicine

Cobepa

Maryland

December 2019

Florida Spine and Pain

Orthopedic Care Partners

Varsity Healthcare

Florida

November 2019

The Steadman Clinic

Orthopedic Care Partners

Varsity Healthcare

Colorado

October 2019

South Island Orthopedics

Health Plus Management

Investcorp

New York

July 2019

Beacon Orthopaedics & Sports Medicine

Beacon Orthopaedics & Sports Medicine

Revelstoke Capital Partners

Ohio

July 2019

Southeast Orthopedic Specialists

HOPCo

Frazier Healthcare

Florida

July 2019

Orthopedic and Sports Therapy Institute

Cora Physical Therapy

Gryphon Investors

Illinois

July 2019

Orthopaedic & Neurosurgery Specialists

Spire Orthopedic Partners

Kohlberg & Company

Connecticut

May 2019

Citrus Orthopaedic & Joint Institute

Orthopedic Care Partners

Varsity Healthcare

Florida

May 2019

Ocala Orthopedic Care

Orthopedic Care Partners

Varsity Healthcare

Florida

May 2019

James B. Duke, M.D.

Orthopedic Care Partners

Varsity Healthcare

Florida

December 2018

Florida Spine and Joint Institute

Florida Spine and Joint Institute

Trive Capital

Florida

November 2018

Precision Spine Care

Roseland Management

Bow River Capital

Texas

August 2018

OrthoBethesda

OrthoBethesda

Atlantic Street Capital

Maryland

November 2017

The Orthopaedic Institute

Orthopedic Care Partners

Varsity Healthcare

Florida

With new platforms being announced each quarter, PGP expects to see an uptick in add-on transactions throughout 2021 as existing groups look to increase local density and expand into new geographies.

The post Orthopedics Market Update appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
May 12, 2021 at 12:40PM

Dermatology Market Update
https://physiciangrowthpartners.com/uncategorized/dermatology-market-update/

Dermatology saw its first private equity investment in 2011 which sparked a decade-long wave of national consolidation in the space. Most recently, HEP Fund’s partnership with New York-based MD Alliance Solutions in August of 2020 brought the total PE-backed platforms in the space to over 30. 

We’re currently seeing strength in capital markets driving strong activity both in terms of add-on acquisitions (PGP has advised on two dermatology transactions already this year and expects to close two more before year end). At the same time sponsors are seeing an opportunity to transact in the market and currently OMERS-backed Forefront Dermatology is in the market and will soon transact with a larger private equity group to continue its growth trajectory.

While dermatology has been one of the more heavily consolidated specialties (seeing over 15 transactions in the last 6 months alone), there is still significant runway within the market as groups compete for key assets and market share.

Select Recent Private Equity Transactions in the Dermatology Space

Date

Target

Platform

PE Sponsor

State

June 2021

Sperling Dermatology*

Forefront Dermatology

OMERS

New Jersey

June 2021

Goodman Dermatology

Waters Edge/Riverchase

Gryphon Investors

Georgia

May 2021

Village Dermatology

Forefront Dermatology

OMERS

Alabama

May 2021

Spectrum Dermatology

Pinnacle Dermatology

Chicago Pacific Founders

Arizona

April 2021

Ariano Dermatology

Pinnacle Dermatology

Chicago Pacific Founders

Illinois

February 2021

Advanced Dermatology Associates*

MDAlliance

Health Equity Partners

New York

January 2021

Carolina Skin Care

Anne Arundel Dermatology

Ridgemont Equity Partners

Florida

January 2021

Sunflower Dermatology

Epiphany Dermatology

CI Capital Partners

Texas

January 2021

Virginia Dermatology & Skin Care Center 

Pinnacle Dermatology

Chicago Pacific Founders

Virginia

December 2020

DeSoto Dermatology

Epiphany Dermatology

CI Capital Partners

Texas

December 2020

Nielson Dermatology

Advanced Dermatology & Cosmetic Surgery

Audax Private Equity

Florida

December 2020

Colorado Dermatology Specialists

Advanced Dermatology & Cosmetic Surgery

Audax Private Equity

Colorado

October 2020

Harkaway Center for Dermatology and Aesthetics

Schweiger Dermatology

LNK Partners

New Jersey

October 2020

Dermatology Associates of Montgomery

Advanced Dermatology & Cosmetic Surgery

Audax Private Equity

Alabama

September 2020

Dermatology & Plastic Surgery*

Forefront Dermatology

OMERS

Florida

September 2020

SkinSmart Dermatology

DermCare Management

    Hildred Capital Management

Florida

August 2020

MD Alliance

MD Alliance

Health Equity Partners

New York

August 2020

SkinCare Colorado

Epiphany Dermatology

CI Capital Partners

Colorado

July 2020

Dermatology & Cosmetics Surgery Associates

Anne Arundel Dermatology

NMS Capital

Maryland

June 2020

Skin and Laser Specialists of NY & NJ

Schweiger Dermatology

LNK Partners

New York & New Jersey

*Represented by Physicians Growth Partners

About Our Firm

Physician Growth Partners (PGP) is a transaction advisory firm which represents independent physician groups in transactions with private equity

Differentiated Healthcare Transaction Advisors:

Senior partner involvement at every stage of the process

Extensive dermatology transaction experience

Unmatched relationships with all key private equity and strategic buyers interested in Dermatology

Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market clearing valuation

The post Dermatology Market Update appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
August 05, 2021 at 05:37AM

Pain Management Market Update
https://physiciangrowthpartners.com/uncategorized/pain-management-market-update/

Even with Private Equity investment in Interventional Pain Management (“IPM”) accelerating in recent years, it remains one of the most fragmented areas within subspecialty medicine. Despite the decade long consolidation wave, the majority of physicians in the IPM sector practice in groups with less than 5 providers. Consolidation is largely being driving by the market inefficiencies created by fragmentation.

The post Pain Management Market Update appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
August 09, 2021 at 06:08AM

Eye Care Market Update
https://physiciangrowthpartners.com/healthcare-ma/eye-care-market-update/

Now more than ever, ophthalmologists and optometrists are considering a partnership with Private Equity due to attractive valuations and significant outside economic forces within the sector.  In under 5 years there have been more than 30 platform investments in 40 states by Private Equity, a number that continues to grow. Eye Care remains one of the most fragmented specialties within healthcare with nearly 60 percent of physicians practicing in groups with less than 10 providers

The post Eye Care Market Update appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
August 10, 2021 at 05:57AM

Cardiology Market Update
https://physiciangrowthpartners.com/uncategorized/cardiology-market-update/

Cardiology is one of the newer sectors seeing interest from private equity. There are just six notable platforms currently active in the space. Compared to other healthcare services verticals such as dermatology, eye care, or pain management, cardiology has remained relatively untouched until recently.

The post Cardiology Market Update appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
August 31, 2021 at 08:19AM

Primary Care & Multispecialty Market Update
https://physiciangrowthpartners.com/uncategorized/primary-care-multispecialty-market-update/

After many years of Private Equity investments focused on single specialty providers, Primary Care and Multi-specialty have proven to be among the hottest areas for private equity investment over the last two years.

Private equity groups are recognizing the ability to create value created when referrals, ancillary services, and patients can be kept within a single network for multiple specialties. Whether practices are taking on risk or have built traditional fee-for-service models, groups that control large patient populations are being rewarded with historically high valuations and interest.

The post Primary Care & Multispecialty Market Update appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
August 31, 2021 at 08:41AM

Medical practice transaction advisors.
https://physiciangrowthpartners.com/

Michael Kroin and Ezra Simons, partners at Physician Growth Partners
https://physiciangrowthpartners.com/media-mentions/michael-kroin-and-ezra-simons-partners-at-physician-growth-partners/

This episode features Michael Kroin and Ezra Simons, partners at Physician Growth Partners. Here, they discuss the healthcare specialties particularly of interest for private equity platforms, the average size of deals currently being made, and more. 

Click Here to Listen.

The post Michael Kroin and Ezra Simons, partners at Physician Growth Partners appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
April 25, 2022 at 06:34AM

Physician Growth Partners Advises Urology Austin’s Partnership to Form Urology America
https://physiciangrowthpartners.com/media-mentions/physician-growth-partners-advises-urology-austins-partnership-to-form-urology-america/

Chicago-based Physician Growth Partners was the exclusive transaction adviser for Urology Austin’s partnership with Dallas-based Gauge Capital to form Urology America, according to a Nov. 12 press release.

Urology America is a new urology platform, the release said. PGP used a targeted, comprehensive process to help Urology Austin (Texas) find a partner while navigating the COVID-19 pandemic.

“PGP is incredibly pleased with the outcome achieved in Urology Austin’s transaction process,” Michael Kroin, managing partner said in the release. “The shareholders had the preeminent regional platform and were ready to replicate it at the national level. Finding the right partner with whom they could accomplish this level of growth was no easy task.”

Read the full press release here.

The post Physician Growth Partners Advises Urology Austin’s Partnership to Form Urology America appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
April 25, 2022 at 06:37AM

Locals Voice Concerns as Arizona Nonprofit Hospital Weighs LifePoint Merger
https://physiciangrowthpartners.com/media-mentions/locals-voice-concerns-as-arizona-nonprofit-hospital-weighs-lifepoint-merger/

LifePoint Health met with Yuma, Ariz., community members Oct. 20 as it hopes to acquire nonprofit Yuma Regional Medical Center, a move some are concerned would be bad news for the community, KYMA reported Oct. 20.

“They are in fact a nationally traded company, they have stockholders, we have stockholders too, those are all the people sitting here,” John Nelson, a community member, said.

Yuma Regional signed a non-binding letter of intent in July announcing its partnership with Brentwood, Tenn.-based LifePoint, which is owned by the private equity firm Apollo Management Group. It still needs to be approved by the Hospital District Board One.

Ron Clark, MD, orthopedic surgeon at Yuma Regional, told KYMA in an Oct. 19 article that joining a for-profit system could mean less money going directly to the hospital and the community. Instead, LifePoint may decide to give those resources to investors and shareholders, he said.

A spokesperson for LifePoint told Becker’s the system actually will be investing in the community.

“We are honored to be selected as the potential partner for Yuma Regional Medical Center. Our goal is to help YRMC accelerate the great work they are doing today by expanding access to care locally in Yuma, enhancing quality and patient safety, and investing in the hospital and community in meaningful ways,” LifePoint said in their statement. “In fact, through the joint venture, in excess of $300 million would be invested in the Yuma community over the span of 10 years, including key investments in facilities, services, technology and equipment, as well as in YRMC employees and providers. We are working alongside the YRMC team to appropriately proceed through the transaction process, get to know the community, and create a strong foundation for the future.”

Click here to read the article on Becker’s Hospital Review.

The post Locals Voice Concerns as Arizona Nonprofit Hospital Weighs LifePoint Merger appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
April 25, 2022 at 06:38AM

PGP Cofounder Ezra Simons talks M&A Exit Strategies with Dr. Grant Stevens
https://physiciangrowthpartners.com/media-mentions/pgp-cofounder-ezra-simons-talks-ma-exit-strategies-with-dr-grant-stevens/

Ezra Simons was recently a guest on Dr. Grant Stevens podcast, The Technology of Beauty, discussing “M&A Exit Strategies for Private Aesthetic Practices.” Dr. Stevens is a key opinion leader in the plastic surgery field. He is the founder of Marina Plastic Surgery Associates and co-founder of Orange Twist, a growing network of aesthetic med spas. Ezra discussed how PGP works with medical entrepreneurs to attract private equity investment and achieve exceptional financial and operational results.

You can view the full one hour video below.

The post PGP Cofounder Ezra Simons talks M&A Exit Strategies with Dr. Grant Stevens appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
May 02, 2022 at 12:26PM

Women’s Health Private Equity
https://physiciangrowthpartners.com/uncategorized/womens-health-private-equity/

April 2022

Women’s Health remains a leading area of interest for private equity investment in healthcare. Since initial investment began in 2013 when Unified Women’s Healthcare was established by Ares, there has been a wave of consolidation throughout many regions of the US. While there have been a handful of platforms created in recent years, there is still ample opportunity for “first movers” in many markets. Private equity firms looking to enter the women’s health space will seek to partner with physicians that are committed to achieving optimal outcomes for their patient base. Once a new platform is established, financial sponsors will look to find add-on acquisitions to build regional density and expand geographic reach. Although there has been a substantial amount of deal activity in recent times, there is still a considerable opportunity to partner with a private equity sponsor. The opportunity remains very strong for groups with an interest in pursuing a partnership with private equity to achieve their long-term goals and succession plans.

Recent Transaction Activity in Women’s Health

Date

Target

PE Sponsor

Platform

State

September 2021

Valley Women for Women

Atlas Partners

Unified Women’s Healthcare

AZ

August 2021

Women’s Health USA

Atlas Partners

Unified Women’s Healthcare

5 States

August 2021

West Valley Women’s Care

Sverica Capital

Women’s Health USA

AZ

June 2021

CCRM Fertility

Atlas Partners

Unified Women’s Healthcare

NY

June 2021

OBGYN Associates of North Jersey

Partners Group

Axia Women’s Health

NJ

May 2021

Axia Women’s Health

Partners Group

Axia Women’s Health

NJ

February 2021

Together Women’s Health

Shore Capital Partners

 Together Women’s Health

MI

January 2021

Care First

Audax Group

Axia Women’s Health

NJ

December 2020

Women’s Care Enterprises

BC Partners

 

FL, CA, KY

December 2020

Desert Perinatal Associates

Sverica Capital

Women’s Health USA

NV

December 2020

Mid Atlantic Women’s Care

Atlas Partners

Unified Women’s Healthcare

VA, NC

December 2020

Unified Women’s Healthcare

Atlas Partners

 

12 States

November 2020

Women’s Health Group

Shore Capital Partners

 

CO

September 2020

Women’s Health USA

Sverica Capital

Women’s Health USA

NV

September 2020

Women’s Health Associates of Southern Nevada

Sverica Capital

Women’s Health USA

NV

June 2020

Reiter, Hill, Johnson & Nevin

Assured Healthcare Partners

Advantia Health

DC, MD, VA

June 2020

Seven Hills Women’s Health Centers

Audax Group

Axia Women’s Health

OH

March 2020

Seven Hills OB-GYN Associates

Audax Group

Axia Women’s Health

OH

March 2020

Rubino OB/GYN Group

Audax Group

Axia Women’s Health

NJ

January 2020

Southern California Reproductive Center

Lindsay Goldberg

Women’s Care Enterprises

CA

January 2020

Oceanside OB/GYN

Audax Group

Axia Women’s Health

NJ

January 2020

Advantia Health

Assured Healthcare Partners

 

IL, MD, MO, VA,

January 2020

Women’s Health of Central Massachusetts

Sverica Capital

Women’s Health USA

MA

About Our Firm

Physician Growth Partners (PGP) is a transaction advisory firm working exclusively with independent physician groups in transactions with private equity.

Differentiated Healthcare Transaction Advisors:

Senior partner involvement at every stage of the process

Extensive physician practice transaction experience

Unmatched relationships with all key private equity and strategic buyers interested in gastroenterology

Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market clearing valuation

Discuss Women’s Health Market Activity with Our Team

The post Women’s Health Private Equity appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
May 02, 2022 at 01:31PM

Gastroenterology Private Equity
https://physiciangrowthpartners.com/uncategorized/gastroenterology-private-equity/

April 2022

Gastroenterology has emerged as an important sector of interest for private equity investment. Although the market is still in the early stage of consolidation, the industry has seen a transformative shift in the last 3 years. Seven of the 10 “platform” entities that PE firms are using to drive these efforts were established after May 2019 and the market has become increasingly active and competitive. This investment boost has led to new opportunities for independent physician groups to capitalize on what they have built and take part in future growth. Heightened deal activity and considerable dry powder in the market creates a unique window of opportunity yet to be seen in this industry. And despite the increased activity, favorable deal terms and competitive valuations are at all-time highs for both add-on acquisitions and initial platform investments. The outlook for private equity partnerships with gastroenterologists is strong and looks to be an attractive option for physician owners to achieve their goals and empower succession plans.

Date

Target

Platform

PE Sponsor

State

April 2022

Goldberg, Rosenstein, Khan & Forman, M.D.

Gastro Health

Omers

MD

February 2022

Gastroenterology of Virginia Beach

Capital Digestive Care

Kelso

VA

February 2022

Greater Boston Gastroenterology

Gastro Health

Omers

MA

January 2022

GAB Endoscopy Center

GI Alliance

Waud Capital

TX

January 2022

South Plains Endoscopy Center

GI Alliance

Waud Capital

TX

January 2022

Digestive Health Associates

One GI

Webster Equity Partners

IN

January 2022

Digestive Disease Consultants

GI Alliance

Waud Capital

IL

January 2022

Optimal Digestive Care

Gastro Health

Omers

MD

January 2022

Gastroenterology Associates

Gastro Health

Omers

FL

January 2022

GI Specialists

U.S. Digestive Health

Amulet Capital

PA

January 2022

Washington Gastroenterology

GI Alliance

Waud Capital

WA

December 2021

Digestive Disease Consultants

One GI

Webster Equity Partners

OH

December 2021

North Coast Endoscopy

One GI

Webster Equity Partners

OH

December 2021

Great Lakes Gastroenterology

One GI

Webster Equity Partners

OH

December 2021

Gastroenterology Associates of Southwest Florida

United Digestive

Franzier Healthcare Partners

FL

December 2021

Digestive Care Physicians

United Digestive

Franzier Healthcare Partners

GA

December 2021

East Valley Gastroenterology

Gastro Health

Omers

AZ

November 2021

Digestive Care Center in North Miami

Gastro Health

Omers

FL

November 2021

DeKalb Gastroenterology Associates

United Digestive

Franzier Healthcare Partners

GA

October 2021

Associates in Digestive Health

United Digestive

Franzier Healthcare Partners

FL

October 2021

Gastroenterology Associates of Florida

GI Alliance

Waud Capital

FL

About Our Firm

Physician Growth Partners (PGP) is a transaction advisory firm working exclusively with independent physician groups in transactions with private equity.

Differentiated Healthcare Transaction Advisors:

Senior partner involvement at every stage of the process

Extensive physician practice transaction experience

Unmatched relationships with all key private equity and strategic buyers interested in gastroenterology

Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market clearing valuation

Discuss Gastroenterology Market Activity with Our Team

The post Gastroenterology Private Equity appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
May 02, 2022 at 01:34PM

Cardiology Private Equity
https://physiciangrowthpartners.com/uncategorized/cardiology-private-equity/

April 2022

Cardiology is one of the newer sectors seeing interest from private equity and activity is ramping up. We have seen 7 organizations enter this market over the last 2 years with 4 coming online over the last 12 months.

There is no question that cardiology is in the infancy stages of a significant consolidation wave similar that seen in dermatology or gastroenterology. While cardiology is much newer from a consolidation standpoint, the tailwinds are unmatched.

Significant procedure flow moving from hospital-based to physician-owned settings

Hospital employment agreements with previously acquired Cardiologists are expiring rapidly

Enhanced Medicare reimbursement for value-based initiatives such as Chronic Care Management and Remote Patient Monitoring

Early movers have opportunities to select some of the best PE partners and get a head start consolidating regionally.

Select Recent Private Equity Transactions in the Cardiology Space

Date

Target

Sponsor

Platform

State

January 2022

My Cardiologist

Deerfield Management

Novocardia

Florida

December 2021

Cardiovascular Medicine

Webster Equity Partners

Initial Platform (Cardiovascular Associates of America)

Iowa

November 2021

Cardiovascular Health Clinic

Assured Healthcare Partners

Initial Platform (Cardiovascular Health Partners)

Oklahoma

November 2021

USHP

Silversmith Capital Partners

Initial Platform

Illinois

July 2021

First Coast Heart & Vascular

Deerfield Management

Novocardia

Florida

November 2020

Cardiovascular & Arrhythmia Institute

Bain Capital

National Cardiovascular Partners and Azura Vascular Care

Arizona

November 2020

Partners First Cardiology

Varsity Healthcare Partners

Partners First Cardiology

Texas

April 2019

Arizona Cardiovascular Institute & the Center for Cardiovascular Research and Education

Bain Capital

National Cardiovascular Partners

Arizona

April 2019

Cardiovascular Consultants, LTD

Bain Capital

National Cardiovascular Partners

Arizona

February 2019

Sunset Cardiology

Comvest Partners and Athyrium Capital Management

IMC Health Medical Centers

Florida

March 2017

St. Louis Cardiovascular Institute

UnitedHealth

Surgical Care Affliates

Missouri

January 2014

National Cardiovascular Partners

Bain Capital

National Cardiovascular Partners

Texas

Undisclosed

Cardiothoracic & Vascular Surgical Associates

Ashlar Capital

Cardiothoracic & Vascular Surgical Associates

Florida

About Our Firm

Physician Growth Partners (PGP) is a transaction advisory firm that represents independent physician groups in transactions with private equity

Differentiated Healthcare Transaction Advisors:

Senior partner involvement at every stage of the process

Extensive physician practice transaction experience

Unmatched relationships with all key private equity and strategic buyers interested in Cardiology

Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market-clearing valuation

Discuss Cardiology Market Activity With Our Team

The post Cardiology Private Equity appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
May 02, 2022 at 01:35PM

Orthopedic Private Equity Market
https://physiciangrowthpartners.com/2022/orthopedic-private-equity-market/

May 2022

Within the landscape of healthcare investing, orthopedic specialty practices have seen amplified levels of interest from private equity investors within the past year. Despite this interest, compared to other specialties that are further along in the consolidation life cycle, orthopedic care has yet to experience large scale M&A efforts. Orthopedic transactions totaled 20 in 2021, following 5 in 2020 and 17 in 2019. Comparatively, specialties like dermatology and eye care have seen 25 and more than 95 transactions in 2021, respectively. 

There are many parallels that can be drawn between orthopedics and other sub-specialties that have attracted private equity investment. One driver of consolidation across all physician practices is the experience that operational and cost synergies emerge with scale. With a sub-specialty as fragmented as orthopedics, private equity investors seek to add value by improving revenue cycle management, consolidating IT, and payroll, as well as adding ancillary services that smaller practices cannot support. These consolidated platforms are eventually striving to shift the tides in their favor through payor contracting as well.

Recent Orthopedic Private Equity Consolidation

Date

Target

Platform

Target State

May 2022

Premier Orthopaedics

HOPCo

Pennsylvania

April 2022

Sports Medicine North

Spire Orthopedic Partners

Massachusetts

February 2022

Southern Orthopaedic Surgeons

U.S. Orthopaedic Partners

Alabama

February 2022

Middlesex Orthopedic Surgeons 

Spire Orthopedic Partners

Massachusetts

January 2022

Arlington Orthopedic Associates

Novum Orthopedic Partners

Texas

January 2022

Abilene Sports Medicine & Orthopedics

Novum Orthopedic Partners

Texas

January 2022

Washington Orthopaedics & Sports Medicine

OrthoBethesda

Washington DC

January 2022

JIS Orthopedics

OrthoAlliance

Ohio

December 2021

Atlantic Pediatric Orthopedics

American Orthopedic Partners

New Jersey

December 2021

Andrews Sports Medicine & Orthopaedic Center

U.S. Orthopaedic Partners

Alabama

December 2021

Resurgens Orthopaedics

United Musculoskeletal Partners

Georgia

November 2021

Orthopaedic Associates of St. Augustine

HOPCo

Florida

October 2021

Connecticut Neck & Back Specialists

Spire Orthopedic Partners

Connecticut

July 2021

Tucson Orthopaedic Institute

Orthopedic Care Partners

Arizona

July 2021

North Alabama Bone & Joint Clinic

U.S. Orthopaedic Partners

Alabama

July 2021

Orthopaedic Institute of North Mississippi

U.S. Orthopaedic Partners

Mississippi

July 2021

Andrews Sports Medicine & Orthopaedic Center

U.S. Orthopaedic Partners

Alabama

June 2021

Los Angeles Orthopaedic Surgery Specialists

Unity MSK

California

June 2021

Northwest Extremity Specialists

Unity MSK

California

May 2021

Motion Orthopaedics

Orthopedic Care Partners

Missouri

May 2021

Spine Nevada

HOPco

Nevada

March 2021

Jackson Anesthesia Pain Center

US Orthopaedic Partners

Mississippi

March 2021

Oxford Orthopaedics

US Orthopaedic Partners

Mississippi

February 2021

Orthopaedic Associates of Manhasset

Spire Orthopedic Care

New York

January 2021

Bluegrass Orthopedics

Bluegrass Orthopedics

Kentucky

January 2021

The Center for Bone & Joint Surgery of the Palm Beaches

Healthcare Outcomes Performance Company

Florida

December 2020

US Orthopedic Alliance

USOA Orthopedic Alliance

California

September 2020

Mississippi Sports Medicine

US Orthopedic Partners

Mississippi

August 2020

OrthoCincy

Beacon Orthopaedics & Sports Medicine

Ohio

August 2020

Reconstructive Orthopaedics & Sports Medicine

Beacon Orthopaedics & Sports Medicine

Ohio

February 2020

Tallahassee Orthopedic & Sports Physical Therapy

Confluent Health

Tennessee

January 2020

Precision Orthopedics & Sports Medicine

Precision Orthopedics & Sports Medicine

Maryland

December 2019

Florida Spine and Pain

Orthopedic Care Partners

Florida

November 2019

The Steadman Clinic

Orthopedic Care Partners

Colorado

Why Now?

Orthopedics has always been an attractive specialty for private equity due to a multitude of factors, but now so more than ever. First, aging demographics in the United States continue to drive an increase in demand for services. As the U.S. population continues to age, joint replacements, spinal complications and related cases have continued to rise nationally. For example, the United States Joint Replacement Market size was estimated at $3.62 billion in 2021 and expected to reach $3.97 billion in 2022 and is projected to grow to reach $5.19 billion by 2027.

Source: American Joint Replacement Registry 2020 Annual Report, US Census

Additionally, orthopedic care remains one of the most fragmented subspecialties in healthcare. It is estimated that nearly 70% of orthopedic practices have fewer than 10 providers. Notably, there is a lack of established, scaled orthopedic platforms within major U.S. metro markets and the surrounding regions. Currently, 15 platform organizations exist, serving major markets in the Southwest, Southeast, Mid-Atlantic and Northeast. These facts coinciding with the ongoing push towards outpatient procedures that offer the same quality of care, affordability, and increased accessibility for patients has created an environment ripe for independent practices and private equity to take advantage of. That said, only recently has the attention from private equity in the space been so widely reciprocated by orthopedists.

With a plethora of service offerings, there are many opportunities for sustained growth among private equity backed orthopedic platforms. Physical therapy, pain management, sports medicine, DME programs and MRI/imaging present a variety of ways that platforms can create “one-stop-shop” opportunities for private practices seeking growth. Additional service lines such as orthopedic-focused urgent care, and surgery centers only increase the attractiveness of the specialty to the private equity investment community. The depth of the orthopedic service offering simultaneously creates a value proposition that private equity can offer orthopedists as well. The introduction, expansion, and enhancement of services private equity can support allows for greatly accelerated growth, and in turn, a benefit physician shareholders get to reap on an ongoing basis. 

Looking at the broader picture and the recent increase in interest from independent orthopedists, activity is expected to rapidly accelerate in the next 5-7 years. This creates an attractive but narrowing window of opportunity for independent practices to become first movers and leaders within their geographic landscape.

The Private Equity Strategy

The overall drivers of private equity investment are similar between subspecialties – but the underlying strategies vary from group to group. A unique component of orthopedics, particularly when compared to other more established specialties such as ophthalmology or dermatology, is the focus on building regional (versus national) platforms. Groups are looking to enter markets with a scaled, clinically excellent provider, then building around them in that region. Whether it be through de novo or acquisitive growth or service line expansion, PE backers will use their resources to build density around a founding partner in each region. Each platform may have different preferences as to how they achieve economy of scale, but that will always be the ultimate goal.

When it comes to building an effective growth strategy, private equity platforms are seeking out physicians, experienced operators and industry veterans that are well versed in sourcing, evaluating, and eventually consummating partnership opportunities. By strategic planning, deploying ample capital and aligning providers, optimal outcomes can be achieved from both a clinical and financial standpoint. Private equity backers seek to achieve target ROI over an extended growth cycle that is typically 3 to 7 years, so operational shortcuts are not an option for investors. Maintaining quality care is at the forefront of each platform’s strategy, but it is always important to understand the underlying vision of each potential capital partner before entering a transaction. 

Once a capital sponsor has completed its growth cycle, it will look to sell the platform to a new financial backer. This will occur in a variety of ways, including selling to another existing platform, a larger healthcare-focused fund, or by potentially going public. This sale is frequently referred to as a “second bite,” triggering a liquidity event for physicians to achieve a successful economic outcome or roll their equity over to the new platform sponsor. Orthopedics has yet to experience large scale “second bites,” proving that it is a specialty that has a substantial runway for growth.

How are Independent Physicians Affected?

One of the most pressing questions that comes from physicians interested in a partnership opportunity is how it will affect their practice and everyday operations. Private equity sponsors have become an attractive route for providers by alleviating the burden of balancing business development, administrative duties, and clinical care. Most platforms understand that partnerships are not ‘one size fits all’, and work to achieve the goals of providers in all aspects of the business. Whether physicians prefer to be hands-off or take part in strategic planning, there are platforms that offer a full range of options. Practices at the local level are most often encouraged to be as involved as possible to plan for target market entries and future service offerings.

As the state of the healthcare market has evolved, physicians have reacted to the macroeconomic shifts posing risks to their independent practices. COVID-19 presented the challenge of dealing with unprecedented business conditions while also seeking to deliver exceptional care. With a capital backer there is insulation from external forces, allowing providers to focus on quality outcomes for their patients. Moving forward, orthopedic practices will continue to join private equity platforms at an accelerating pace. It’s imperative to consider potential partners carefully to ensure there is an aligned vision of solutions that can be brought to each physician involved.

Driving Practice Value

While the starting point of establishing transaction value begins with financials, there are a multitude of factors both qualitative and quantitative in nature that influence purchase price. Market reputation, established operational infrastructure and attractive growth prospects can all raise valuations. Physician Growth Partners utilizes our team’s financial acumen and our market knowledge to accurately measure what buyers will give “credit” for.  This ensures our client will achieve an optimal value. 

With extensive experience negotiating opposite the PE buyer universe, PGP delivers results to all clients that exceed market expectations and go beyond what could be achieved on a standalone basis. An essential aspect of how we drive value lies in utilizing a competitive process. With a carefully curated set of prospective partners involved, we help clients understand how each option can help achieve the practice’s goals, both in the short and long term. Utilizing a healthcare transaction advisor like PGP gives physicians the ability to focus on clinical operations while an experienced, independent team crafts the optimal partnership strategy to achieve their goals.

What Happens After the Transaction?

Transacting with a private equity sponsor can seem like a daunting transition — in reality, physicians will largely continue to operate their practice in a “business as usual” manner. Sponsors will work to incorporate strategic growth plans, but in orthopedics, where much of the decision making is made at the local level, a great deal of autonomy remains. Operationally, platforms offer guidance to help practices enhance their workflow. All changes that occur should be additive in nature, not stripping away what has been built up since the inception of the practice. 

Infrastructure will be bolstered, and back-office operations will likely be integrated into the platform to improve efficiency. On the clinical front, physicians will practice medicine the way they always have. Clinical autonomy is among the most important factors for physicians interested in a partnership, PGP emphasizes this and platforms understand its importance.

An additional relevant issue in orthopedics (but not all sub-specialties) is the ability to achieve “income repair” post-transaction. While a percentage of the physician’s historical compensation will be scraped to create EBITDA (which buyers will ultimately apply a multiple to), after the completion of the deal physician compensation generally remains untouched. Instead of moving to a compensation model based on a percentage of collections, as is done in ophthalmology and dermatology, orthopedics can continue distributing profits amongst the partners as they have done in the past. While this will result in reduced compensation at the outset, a successful partnership will lead to increasing profits allowing partners to get back to historical comp levels quickly and, potentially, achieve even greater levels down the line. This concept is very important to consider for tenured providers, but even more so for younger providers who may not view private equity favorably.

The last element of the transaction that is important to note is the equity that is rolled over into the new partnership by practice shareholders. Platforms expect that a percentage of the purchase price will be used for equity, but that percentage will change depending on the group as well as each shareholder physicians’ future goals. This is to maintain alignment with the overarching platform, and it allows shareholders to partake in the overall growth strategy of the private equity sponsor. A successful partnership will see shares appreciate until the 3 to 7-year growth cycle is completed, leading to the first liquidity event.  

When considering a private equity partnership, the economics of the transaction become a moot point if the clinical and strategic fit is not right. In the current landscape of healthcare investment, doctors must continue to operate in an environment that leads to the highest quality outcomes for patients. Without this, a platform will struggle to find success in the long term. By developing a proper partnership plan, generating a sustainable and optimal growth strategy will come seamlessly with the right capital backer. 

Physician Growth Partners is a firm that recognizes and prioritizes the importance of clinically focused outcomes, first and foremost. Groups that we have had the opportunity to advise will attest to the emphasis we place on prioritizing the partnership fit over the economics of a transaction.

To contact Physician Growth Partners about a potential relationship, please see below:

About Our Firm

Physician Growth Partners (PGP) is a transaction advisory firm that represents independent physician groups in transactions with private equity

Differentiated Healthcare Transaction Advisors:

Senior partner involvement at every stage of the process

Extensive physician practice transaction experience

Unmatched relationships with all key private equity and strategic buyers interested in Orthopedics.

Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market-clearing valuation

Discuss Orthopedics Market Activity With Our Team

The post Orthopedic Private Equity Market appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
May 18, 2022 at 10:39AM

PGP research cited in Becker’s Healthcare and Kaiser Health articles on PE investment in gastroenterology practices
https://physiciangrowthpartners.com/media-mentions/pgp-research-cited-in-beckers-healthcare-and-kaiser-health-articles-on-pe-investment-in-gastroenterology-practices/

A report published by Physician Growth Partners (“PGP”) last fall showed that nearly 10% of the nation’s 14,000 gastroenterologists were partners in or employed by a private-equity backed organization. This report was cited in an article by Kaiser Health News titled “Betting on ‘Golden Age’ of Colonoscopies, Private Equity Invests in Gastro Docs.”

The original Kaiser article was carried in dozens of publications including Fortune, Fierce Healthcare, Duluth Tribune and the St. Louis Post-Dispatch.

Another article about the coverage and adding information on private equity trends in the gastroenterology space was also published by Becker’s Healthcare.

PGP regularly publishes white papers and market updates on private equity investment in all of the practice areas we work with.

The post PGP research cited in Becker’s Healthcare and Kaiser Health articles on PE investment in gastroenterology practices appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
June 06, 2022 at 11:04AM

Urology Market Update
https://physiciangrowthpartners.com/uncategorized/urology-market-update/

Summer 2022

In recent years urology has grown as an attractive specialty target for private equity investors. With a historically fragmented landscape, large PE-backed platforms have increased their efforts to form partnerships in the last three years, making for a highly competitive M&A market. Private equity sponsors find the specialty to be an attractive space due to the size of the market & attractive demographics, opportunities for ancillary service growth and a continuous increase in demand for quality care. Investors looks to overcome the headwinds that private practices now face. These include administrative burdens that affect clinical capacity, staff and physician recruiting, and high capital expenditures for ancillaries such as pathology laboratories, lithotripsy equipment and ambulatory surgery center buildouts. According to the AUA’s 2021 Census, 52% of practicing urologists work in private practice, down from nearly 60% in 2017. As urology consolidation continues, the window to gain a first mover advantage will shrink. However, private equity remains an attractive option for groups seeking partnerships to achieve their clinical goals and succession plans.

Select Recent Private Equity Transactions in Urology

Date

Target

PE Sponsor

Platform

State

March 2022

Advanced Urology Institute

Lee Equity Partners

Solaris Health

Florida

January 2022

New Jersey Urology

Warburg Pincus

Summit Health

New Jersey

January 2022

Urology Associates of Denver

Gauge Capital

Urology America

Colorado

January 2022

West Coast Urology

Triton Pacific

Urology Partners of America (Unio)

California

December 2021

Anne Arundel Urology

Lee Equity Partners

Solaris Health

Maryland

November 2021

Colorado Springs Urological Associates

Lee Equity Partners

Solaris Health

Colorado

November 2021

Michigan Institute of Urology

Lee Equity Partners

Solaris Health

Michigan

October 2021

Advanced Urology Associates

Lee Equity Partners

Solaris Health

Illinois

October 2021

Skyline Urology Group

Triton Pacific

Urology Partners of America (Unio)

California

May 2021

Genesis Healthcare

Triton Pacific

Urology Partners of America (Unio)

California

March 2021

Associated Urological Specialists

Lee Equity Partners

Solaris Health

Illinois

January 2021

Midatlantic Urology

Lee Equity Partners

Solaris Health

Pennsylvania

January 2021

AZ Institute of Urology and Urological Assoc of So AZ

Audax Private Equity

United Urology Group

Arizona

January 2021

Southwest Urology

Silver Oak Services

Integrated Oncology Network

Ohio

November 2020

Associated Medical Professionals of NY

NMS Capital

US Urology Partners

New York

October 2020

Urology Austin

Gauge Capital

Urology America

Texas

June 2020

Integrated Medical Professionals

Lee Equity Partners

Solaris Health

New York

June 2020

The Urology Group

Lee Equity Partners

Solaris Health

Ohio

February 2020

Urology Partners of America

Triton Pacific

Urology Partners of America (Unio)

California

December 2019

Urology Care Alliance

Prospect Hill Growth Partners

Urology Management Associates

New Jersey

December 2019

Arizona Urology Specialists

Audax Private Equity

United Urology Group

Arizona

September 2019

Urology Management Associates

Prospect Hill Growth Partners

Urology Management Associates

New Jersey

January 2019

Bend Urology Associates

Warburg Pincus

Summit Medical Group Oregon

Oregon

About Our Firm

Physician Growth Partners (PGP) is a transaction advisory firm that represents independent physician groups working with private equity.

We are differentiated healthcare transaction advisors providing:

Senior partner involvement at every stage of the process

Extensive physician practice transaction experience

Unmatched relationships with all key private equity and strategic buyers interested in Urology

Educational approach focused on partnership and cultural fit, while simultaneously achieving a market clearing valuation

Discuss Urology Market Activity With Our Team

The post Urology Market Update appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
June 09, 2022 at 03:03PM

Morningstar Financial features PGP representation of Orthopaedic Specialists Austin
https://physiciangrowthpartners.com/media-mentions/morningstar-financial-features-pgp-representation-of-orthopaedic-specialists-austin/

Physician Growth Partners’ (“PGP”) recent representation of Orthopaedic Specialists of Austin was featured in a recent post from Morningstar Financial.

Please read the details of this recent transaction on the Morningstar website.

The post Morningstar Financial features PGP representation of Orthopaedic Specialists Austin appeared first on Physician Growth Partners.

Original Content Source : Physician Growth Partners https://physiciangrowthpartners.com
July 19, 2022 at 09:49AM