The physician medical group M&A market slowed down considerably in the second quarter of 2019, with 30 publicly announced transactions, compared with 38 acquisitions in the first quarter, according to data from HealthCareMandA.com. Compared with the second quarter of 2018, that represents a 55% drop from 66 announced deals. The quarterly total remains the lowest recorded since the fourth quarter of 2016.
Few transactions in the physician medical group market disclose prices, but dollar volume rose to over $2.9 billion, compared with $136 million (from one deal) in the first quarter. The large quarterly total was the result of West Street Capital Partners VII’s $2.7 billion acquisition of Capital Vision Services LP and its roughly 560 physicians from Atlas Partners LP and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ). West Street is the private equity arm of Goldman Sachs.
Private equity firms and their portfolio companies continue to be the driving force behind much of the physician medical groups M&A activity, accounting for 60% of the deals announced in the second quarter. Three companies, American Physician Partners (a portfolio company of BBH Capital Partners), Integrated Oncology Network, LLC (controlled by Silver Oak Services Partners) and Radiology Partners Inc. (a portfolio company of New Enterprise Associates) each made two acquisitions, with MEDNAX, Inc. also making two acquisitions in the neonatology field. “Private equity firms, either directly or through a portfolio company, continue to grow their physician networks, concentrating on building scale in the dermatology, ophthalmology and dental practices,” added Lisa Phillips, editor of The Health Care M&A Report, which publishes the data.
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the HealthCareMandA.com investment research source. For information, or to order the report, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters and maintains databases on the healthcare and seniors housing M&A markets.