NEW CANAAN, Conn., Jan. 12, 2024 – M&A activity in the Physician Medical Group (PMG) sector continued to decrease in Q4:23, reaching a total of 101 transactions, according to data captured in the LevinPro HC database and published by Irving Levin Associates, LLC. The fourth quarter marks the lowest activity in the PMG space all year, representing a 19% drop from Q3:23 when 125 deals were reported and a 33% decrease from Q2:23 that saw 151 acquisitions.
Private equity (PE) firms and their sponsored platforms remain the most active investors in the market, accounting for 58% of announced PMG transactions with 59 deals. Specialized Dental Partners, backed by Quad-C Management, Inc., and Dental Care Alliance, LLC, a portfolio company of Harvest Partners, each completed four transactions and were the quarter’s busiest acquirers. The most active strategic buyer was McKesson Corporation’s US Oncology Network that acquired three practices, expanding its network by 16 oncologists.
The largest physician deal, by disclosed price at least, was the acquisition of Southern New England Regional Cancer Center, LLC and Roger Williams Radiation Therapy, LLC by American Shared Hospital Services for a combined $2.85 million. GenesisCare USA, Inc. was the seller. American Shared Hospital Services purchased 60% of the practices, and the deal was done as part of GenesisCare USA, Inc.’s Chapter 11 bankruptcy process.
Health systems and hospitals were also active in the physician market, announcing five deals and expanding their outpatient care networks by an average of eight physicians per practice. Hospital acquisitions were across the board for specialties, from pediatrics to oncology and internal medicine.
“With high interest rates and increased operational costs, it’s not a surprise deal activity has slowed,” said Kate Humphrey, an Editorial Analyst with Levin Associates. “But as the industry continues to embrace value-based care models, the PMG market will remain one of the most active sectors for the foreseeable future.”
All quarterly results are published in The Health Care M&A Report, which is part of LevinPro HC, a research intelligence platform published by Irving Levin Associates, LLC. For information, or to order the reports, 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 offices in New Canaan, Connecticut and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.
