Why Private Equity is Turning Its Attention to Gastroenterology
M&A activity between physician practices and private equity investors has evolved meaningfully over the last several years. Coming out of the Great Recession, investors pursued consolidation, administrative optimization, and networking improvements in specialties such as dentistry, dermatology, physical therapy, and anesthesiology. Today, having written the playbook for successful partnerships with physician practices, investors have begun identifying the next wave of attractive specialties in healthcare services to implement proven investment strategies.
The Benefits and Increasing Prevalence of Ambulatory Surgery Centers
The first Ambulatory Surgery Center (“ASC”) was established in the 1970s by two Phoenix, AZ-based physicians seeking to “provide timely, convenient, and comfortable surgical services” to patients.1 Today, as the healthcare industry collectively seeks to drive down costs, improve patient health outcomes and overall satisfaction, ASCs have become an increasingly common option for both outpatient and higher acuity surgical procedures.
Key Takeaways from the McDermott Will & Emery 12th Annual Health Care Services Private Equity Symposium . . . a Continuation
MHT Partners’ Healthcare Services practice leadership team’s key takeaways from the McDermott Will & Emery’s 12th Annual Health Care Services Private Equity Symposium:
Core Trends . . . a continuation
Demographic Tailwinds/an Aging, Ailing Population: Where dollars go, investors follow, and the healthcare industry is no exception.
Key Takeaways from the McDermott Will & Emery 12th Annual Health Care Services Private Equity Symposium
This month, McDermott Will & Emery, a leading provider of legal services, hosted its 12th annual Health Care Services Private Equity Symposium. Over the years, this conference has grown into a must-attend event for dealmakers and executives interested in healthcare services transactions.
MHT Partners’ Healthcare Services practice leadership team was in attendance, along with a vast majority of healthcare-focused private equity sponsors and other key players to discuss the state of the U.S. healthcare industry, drivers of and trends in recent M&A activity, and strategies for investing in and building great healthcare businesses. As a leading healthcare services investment bank, below are a few of our key takeaways from the conference:
Healthcare IT Industry Spotlight Interview, Part 3: Casey West, Managing Director at SSM Partners
A continuation from last week’s blog and final installment of the Casey West interview . . .
You’ve made investments in companies such as Apixio and RemitData that offer solutions based on vast amounts of healthcare data. What opportunities do you see in healthcare data science and how do you evaluate risks and regulations when considering healthcare data investments?
Healthcare IT Industry Spotlight Interview, Part 2: Casey West, Managing Director at SSM Partners
A continuation from last week’s “Health Matters” blog . . . an interview with Casey West at SSM Partners
The healthcare industry is also notoriously entrenched and slow moving. What characteristics convince you that an investment has what it takes to disrupt incumbents and embedded practices, or carve out new markets, in its respective corner of the industry to achieve a “hard ROI?”
Healthcare IT Industry Spotlight Interview, Part 1: Casey West, Managing Director, SSM Partners
Tell us a little bit about SSM Partners (a Memphis-based private equity firm focused on Software & Technology, Internet & Consumer, and Healthcare). What attracted you to the firm?
I joined in 2004, shortly after business school. It was a dream of mine to do this type of investing in the Southeast, and that’s what SSM let me do. SSM has been a great small firm for many years and a leader in this part of the country, and I am very happy to be a part of that. We have a culture that distinguishes us. Our founder imparted a service orientation many years ago, and that fits really well with the way that I view the world and the way that I think about business. Getting to brass tacks, though, we’re a growth equity firm that invests in technology companies all over the country, so while we are located here [Memphis, TN], we are not limited geographically. Our market split is about 50-50 B2B technology to healthcare, and I am solely focused on the healthcare sector.
Succession Planning and Unlocking Value in Your Practice
It is never too early to lay the groundwork for unlocking the value in your medical practice. Whether the ultimate goal is liquidity, business continuity or exploring the role of consolidator, there are many advantages of planning for an ownership change three to five years before your desired transaction date. The main benefits include maximizing the ultimate sale value of the practice and preserving your legacy for yourself, your employees and your patients. By preparing appropriately, you can optimize the strategic alternatives for your practice.
Recapping the JP Morgan Healthcare Conference 2018
Each January, JP Morgan’s annual Healthcare Conference draws industry leaders to San Francisco to discuss M&A, investment, and the business of healthcare. In recent years, the impact of the conference has extended beyond the four walls of hotel banquet halls into a four-day, city-wide ecosystem of entrepreneurs, practitioners, advisors, and investors – all focused on healthcare.
MHT Partners views the conference as a critical opportunity for understanding emerging healthcare industry trends and investor sentiment as we kick off the new year. Our healthcare team was on the ground, where we conducted over 50 meetings with investors representing over $20 billion of investable capital. These are our key takeaways:
The Managed Services Organization: How Private Equity and Non-Physicians Can Invest in Provider Groups
As the current wave of physician practice M&A accelerates, private equity investors and transaction attorneys are employing multi-tiered legal structures that satisfy unique healthcare-industry considerations, including the ownership requirements dictated by state-specific “Corporate Practice of Medicine” laws. Managed services organizations (or “MSOs”) are typically at the heart of these legal structures and can be useful when addressing many healthcare-specific transaction requirements. MSOs also can align incentives and allow non-physician partners to provide useful services to affiliated medical practices. Understanding the function of an MSO is critical for physician practices that are exploring opportunities to partner with private equity groups, and engaging healthcare investment bankers and attorneys who are experienced advising provider groups can help establish optimal corporate structures to unlock the value of your practice.