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

PIC & New Investors Eye Expansion

Urgent care chain, Physicians Immediate Care (PIC), is now better equipped to increase its Midwest presence thanks to new investors LLR Partners, Wellpoint and former Walgreen's executive, Stanley Blaylock.  
Investor and new PIC President & CEO, Mr. Blaylock, expects the chain to grow from its current 20 clinics to over 100 in the next six years --- notably in Illinois, Indiana and Wisconsin.  Dr. John Koehler, one of the founders of PIC, will remain with the company as shareholder and Chief Medical Officer.  He and the investors recognize the growth potential of urgent care and according to Dr. Koehler, it is in "the sweet spot of what needs to be done in terms of controlling costs and increasing [insurance] access." >>Read more