Thursday, March 28, 2013
Funding Continues for Walk-in Clinics
Private equity firms continue funding of healthcare’s urgent care sector. This ongoing interest is not surprising given 20% clinic growth in the last 4 years*. MedExpress, an industry leader, currently with over 100 locations, was one of the first to benefit from PE interest when it had only 6 offices. More recently, sector funding has come from LLR Partners for Physicians Immediate Care and FFL Partners for WellStreet.
Health insurers and hospital systems also recognize the value of urgent care ownership. However, their acquisition motivation may be slightly different vis a vis private equity firms. Humana, owner of 330-clinic Concentra, and other insurers appreciate the cost containment potential with urgent care clinics (e.g.: Per visit: 30-40% less than doctor visit; 80% less than ER). Hospitals now own 27% of urgent care centers. While not expected to be a large revenue stream, hospital-owned clinics offer a great source of patient referrals. >>Read more*Urgent Care Association of America