Private equity deals are in full swing in healthcare, and orthopedics is no exception. Between 2012 and 2021, orthopedic practices acquired by private equity saw a 7.1% increase in physician prices.
Orthopedic private equity has a mean market share of 54%. Additionally, the number of private equity firms investing in orthopedics has nearly doubled in recent years.
Here are five major orthopedic private equity deals from the last four months, according to a June 27 report from PE Hub:
1. In June, private equity firm Welsh, Carson, Anderson & Stowe invested in Constitution Surgery Alliance, which operates 16 ASCs. CSA operates in five states, performing 100,000 procedures, including many orthopedic procedures, annually.
2. In April, SportsMed Physical Therapy acquired Mendham Physical Therapy. SportsMed is an outpatient rehabilitation services provider backed by Hildred Capital. It manages 45 locations in New Jersey and Connecticut providing physical and occupational therapy and chiropractic services.
3. In April, Wellspring Capital Management acquired minimally invasive spine provider Summit Spine & Joint Centers. Based in Lawrenceville, Ga., Summit Spine manages 17 ASCs and 44 clinics in four states.
4. In April, Mable Health, backed by private equity firm SeaFort Capital, acquired Anderson Orthopedics based in Canada. Anderson Orthopedics is a prosthetics and orthotics provider.
5. In March, Physical Rehabilitation Network, a portfolio company of Gryphon Investors, invested in San Diego-based Spine & Sport Physical Therapy, which has grown from 16 to 51 clinics. PRN is also based in California and helps physical therapists develop and operate their own practices, according to the report.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.