INSIGHT

Q3-2018 Physician Services Update

During the third quarter of 2018, significant investment and consolidation activity continued across the physician services segment. Several specialties such as gastroenterology, radiology, and women’s health, which have recently seen increased private equity-led market activity, continued to see additional expansion by private equity-backed organizations. Gastro Health entered into a new market within Central Florida through the acquisition of Central Florida Gastroenterology, Radiology Partners expanded its geographic presence in Texas through its partnership with West Houston Radiology, and Unified Physician Management acquired Lifeline Medical Associates. New private equity platforms were formed within Orthopedics and Urology through Atlantic Street Capital’s investment in OrthoBethesda and JW Childs Associates’ recapitalization of New Jersey Urology. New Jersey Urology is the second private equity platform investment within the Urology specialty, and OrthoBethesda is the third within the Orthopedic space. The first private equity transactions in Urology and Orthopedics were completed in 2016 and 2017, respectively. With private equity interest continuing to accelerate across physician services, the industry is expected to benefit from increased competition during merger & acquisition processes, continuing to drive strong valuations.

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Sources: SEC Filings; Company Press Releases, and Reports; IBISWorld; Capital IQ; PitchBook; PHP Estimates and Research. This document has been compiled with publicly available information. Provident Healthcare Partners, LLC makes no guarantee of its accuracy or completeness. No data or statement should be construed to be a recommendation for the purchase, sale, or retention of any security.