UC Giants Merge

Two large healthcare organizations announced the proposed merger of their respective urgent care operations.  Select Medical's Concentra and Dignity Health's U.S. Healthworks will come together to "strengthen the delivery of clinical care, standardize best practices and improve service for employers and employees." according to Dignity Chief Financial Officer Daniel Morissette. 

Dignity's subsidiary, U.S. HealthWorks, operates 250 occupational healthcare centers in 21 states whereas Concentra has 315 occupational health centers in 38 states. 

This transaction will build upon an early 2017 joint venture between Select Medical and Dignity.  The two giants will build and manage a Las Vegas area acute inpatient rehabilitation hospital due to open in 2019.  The joint operation also is expected to include 12 jointly run outpatient rehabilitation clinics.  >>Read more

Urgent Care Still on Fire

In a recent article, the NY Times restated a fact that we've know for awhile.  The urgent care healthcare segment continues to be Hot.  As noted by the author, Julie Creswell, "The business model is simple:  Treat many patients as quickly as possible."  From this simple approach, the industry has grown to an estimated $14.5 billion business and garnered the attention of commercial insurance companies, regional health systems, local hospitals.  And now..private equity firms.  In fact, PE investors are driving the growth these days.  Of course, expensive ER visits, limited office hours, the more insureds/less doctors conundrum may have contributed to the UC interest and clinic increase.  (~9000 US clinics)

Certainly, well-run platforms are appealing - wonder how many will evolve into a McDonald's type brand?  What do you think?

>>More food for thought:  Race Is On to Profit From Rise of Urgent Care

One More in NC for U.S. HealthWorks

U.S. HealthWorks strengthens its strong urgent care network and North Carolina presence with the acquisition of IndustriCare.  Dr. Fabienne Ransom currently directs the operation of the Charlotte occupational medical center which was established over 17 years ago.  >>Read more

The U.S. HealthWorks activity continues the 2014 interest in urgent care.  Consider last month's acquisition of two Georgia clinics by American Caresource.  The clinic's previous owner, CorrectMed, LLC, now operates as a subsidiary.   In April, Rite Aid acquired Houston-based RediClinic, a retail clinic operator.  Rite Aid's support will accelerate RediClinic's expansion plans.

See Related Articles on U.S. HealthWorks

U.S. HealthWorks Adds Florida Location

U.S. HealthWorks added another Florida urgent care center to its network with the recent acquisition of Urgent Medical Care in Pompano Beach.  The deal increases their Sunshine State sites to 14 and 203 company-wide.

U.S. HealthWorks clinics offer occupational health care and urgent care services, preventive care, pre-employment and post-offer exams and screening, and return-to-work rehabilitative care.  U.S. HealthWorks operates as a Calfornia-based subsidiary of Dignity Health - who acquired them in August, 2012.  >>Read more

U.S. HealthWorks Acquired by Dignity

U.S. HealthWorks Medical Group, the largest independent operator of occupational health & urgent care centers, was acquired by Dignity Health, formerly Catholic Healthcare West.  

U.S. HealthWorks which operates 172 centers in 16 states was previously a portfolio company of Altaris Capital Partners and Three Arch Partners.  It will be a wholly owned for-profit unit of Dignity.  

As the nation’s fifth largest hospital chain, the acquisition jumpstarts Dignity’s efforts to extend its reach beyond California, Arizona and Nevada to a national level.