Physician medical group acquisitions drop 18% in Q1: 5 key trends

Written by Laura Dyrda | May 12, 2016 | Print  | Email

Physician medical group acquisition decreased in the first quarter of 2016 when compared with the last quarter of 2015, according to a new Irving Levin Associates report.

Here are five key notes from the report:

 

1. Deal volume dropped 18 percent from the fourth quarter of 2015; there were just 18 transactions announced in the first quarter.

 

2. First quarter physician medical group acquisitions dropped 25 percent when compared to the same period last year.

 

3. The dollar volume was around $120 million, up 14 percent over the same period a year ago but down 11 percent from the fourth quarter of 2015.

 

4. MEDNAX was the most active buyer during the first quarter with five acquisitions in five different states. Premier Health reported two deals in Ohio.

 

5. Envision Healthcare had the largest transaction, paying $120 million for Emergency Physicians Medical Group in Michigan. The group has more than 500 clinical providers staffing 37 locations in six states.

 

"With major changes in reimbursement on the horizon, we may see more physician groups seeking shelter with larger provider networks, bucking this recent trend of fewer deals," said Lisa Phillips, editor of the Health Care M&A Report.

 

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