NextCare - Deeper in the Heart of Texas

Waco’s Central Texas Urgent Care is the latest acquisition by Mesa, AZ-based urgent care chain, NextCare – now operating 71 clinics in the East, West and Midwest. 

While staff at the two newly-acquired locations will remain the same, a new and different service will soon be available. WAHOO (Wait at Home or Office) is NextCare’s wait-at-home check-in service where patients can wait to be contacted for their exam.  

The Waco acquisition follows an October buying spree that added over 10 clinics, including one in Houston, to NextCare’s clinic total.  >>Read more 

New Owner for Plum Healthcare

Plum Healthcare Group LLC, an owner/operator of 50 skilled nursing facilities and 5 home health and hospice agencies was acquired by Bay Bridge Capital Partners.  Plum facilities are located throughout California as well as Utah and Arizona.  The seller, private equity firm GI Partners, is credited with acquisition and turnaround of 39 skilled nursing facilities and expanding into two additional states.  The sale of Plum generated approximately three times the capital invested by GI Partners. >>Read more

Linden Adds to Dental Platform

Following its October, 2012 acquisition of Northwestern Management Services, LLC, Chicago-based Linden Capital Partners continues investments in the oral care industry.

Young Innovations, a St. Louis-based dental supplies manufacturer signed an agreement to be acquired by the private equity firm - the closing expected in the first quarter of 2013.  Young experienced healthy demand of its consumable products and growth of its new diagnostic line (panoramic x-ray machines and related supplies) generating a 4.8% Q3 increase in income.     >>Read more

Northwestern Management Services LLC provides management and administrative services for Gentle Dental Group.  Gentle Dental, is an upscale retail-based organization with 21 offices in Southeast Florida. 

Health Care Social Media How-to

Anicca Media, a company founded by a physician and a sales professional, shares social media insight for health care practices with the infographic “Healthcare Social Media: Choose the Best Tools for the Job”.  Although selection is not an exact science, the graphic suggests social media platforms that are more effective in achieving some general practice goals, e.g.:  provide patient education or patient reminders, announce practice changes, etc. 

Source:  Anicca Media

The graphic places social media icons for seven common platforms on a scale from thumbs-down (not so great) to thumbs-up (better).  Near the right: good; near the left: not so good.
Click here to learn more and view the full graphic. 

Acadia Closer to $2B Goal

Acadia Healthcare Company, provider of behavioral health care in 20 states, just announced plans to add 8 more facilities to its 34 facility network by year-end.  With nearly $400M in planned acquisitions since September, Acadia’s latest two deals increases bed count by 25% and extends its footprint into Ohio.  

As part of the late November deal, Acadia will acquire Behavioral Centers of America (Sellers: Linden Capital Partners, Health Enterprise Partners and Siguler Guff & Co.) and AmiCare Behavioral Centers, each operating four facilities.  Acadia CEO, Joey Jacobs noted in a news release, 

“...We continue to consider additional acquisition opportunities in the fragmented inpatient behavioral health industry." 

Under Jacob's leadership, beginning in 2011, Acadia has grown from 6 to over 40 facilities.  At that time, Jacobs said that the company had potential to generate $2B in revenue from 100 facilities.  Acadia continues to move toward those goals.  >>Read more

New Partner for Anesthesia Specialty

U.S. Anesthesia Partners  (USAP) represents a new option for independent anesthesia physician groups to better position themselves for practice growth and success.  The new company is focused exclusively on the single-specialty of anesthesia and perioperative care.  It joins the financial backing of private equity firm Welsh Carson Anderson & Stowe and expertise of industry executives, Kris Bratberg and John Rizzo.  

USAP will identify groups of anesthesia providers seeking a capital rich partner for practice infrastructure investments.  USAP’s business model includes IT systems investment to drive provider workflow efficiencies and management of perioperative care processes.  Equity ownership in the organization will be offered to physician partners. >>Read more  

SMART for Referral-based Businesses?

Leveraging a wave of interest in iPhones, iPads and Android devices (85% of doctors own them), a Las Vegas hospice jumped into the technology pool with an app for health care organizations. Developed and marketed by Nathan Adelson Hospice, the iRefer DR app enables a health care provider to send a referral directly to a recipient.  While initially developed for use by the hospice, the organization now markets a customized app for referral-based businesses in health care.  Customizable features include:  Company logo and “About”, “News”, “FAQ” and “Patient Information” tabs.

So, it’s one more for the Apple Store...   >>Read more

Impact of Retail Clinics on PCPs

A recently published study by the RAND Corporation examined whether a trip to one of the growing number of retail clinics would disrupt doctor-patient relationships.  
The results were mixed:

• Those visiting retail clinics were less likely to return to their primary care physician.
• Yet, no evidence revealed that retail clinic visits disrupted preventative medical care or diabetes management (key measurement of quality of care).

Rachel O. Reid, a study co-author noted,

"Retail clinics are still in their infancy and over time we may or may not observe a more negative impact of retail clinics on preventive care or continuity of medical care."

The study included a review of Aetna insurance claims from 2007-2009.  Patients visiting a retail clinic with an acute condition in 2008 were identified.  Researchers compared the retail clinic patient's pattern of care with those who visited a primary care physician for an acute condition during the same timeframe.   >>Read more

Self-insurance: Option for Small Firms?

While self-insurance has been the go-to option for large companies* - not so for small employers.  However, is there a market shift adrift?  In a recent blog post in Healthcare Finance News, Robert Laszewski keeps the discussion going.  He suggests that the movement by smaller employers to self-insurance is “on the cusp of becoming a market trend.”  With ACA implementation on the horizon, this isn’t a new topic.  In a 2011 report, the RAND Corporation outlined influential factors in an employer's decision to self-insure.  >>Read more

* 96% of workers in firms of 5,000+ covered by self-insured plans

Physical Therapist on 2012 Best Jobs List

CNNMoney’s recently published 2012 Best Jobs in America list includes 9 health care jobs in the top 50. The Physical Therapist title ranks ahead of other health care practitioners at #8.  The projected 10-year job growth rate for the profession is an impressive 39%.

Factors considered for the recent ranking include job growth, median salary and size of the field. Other health care titles among the Best Jobs Top 50 include: 

10.  Occupational Therapist

12.  Optometrist

16.  Physician Assistant

27.  Dentist

41.  Nurse Anesthetist

46.  Registered Nurse

47.  Family Physician

49.  Home Care Nurse

NextCare on a Roll in Southwest

October was an outstanding month for NextCare Urgent Care, one of the nation’s largest privately-owned providers of urgent care.  With the acquisition of Access Medical Centers, 9 clinics located in Oklahoma and Texas were brought under the NextCare banner.  Facilities in the Phoenix and Houston areas were also part of last month’s buying spree.

CEO John Julian recently announced a significant recapitalization with BMO Capital Markets positioning NextCare for rapid and continued expansion.

NextCare now operates 69 offices in 7 states including Arizona, Colorado, North Carolina, Ohio, Oklahoma, Texas and Virginia.

Essentials to Empower Business Success

It’s no surprise that health care businesses are tasked with navigating a myriad of day-to-day challenges... whether economic, regulatory, human resources, etc.  The publication, Healthcare Finance News, offers key reminders for health care professionals to effectively steer their organizations to success.   These include: 

1. Start with people
2. Establish level of competence
3. Create coaching programs
4. Re-engage execution support structure
5. Focus on business impact of development

>>Read more

New Owners for Industry Leader

Ranked #9 on Fortune's "100 Best Companies to Work For" in 2012 is CHG Healthcare Services, a leader in the health care staffing industry. According to the US Bureau of Labor Statistics, double-digit growth is projected for multiple health care professions, particularly therapists and other skilled professionals in the health care traveling industry. Certainly, this bodes well for private equity firms Leonard Green & Partners and Ares Management who have agreed to acquire the company from J.W. Childs Associates.

CHG'S service offering includes temporary and permanent placement of physicians, allied health professionals, and nurses through the brands CompHealth, Weatherly Healthcare, RN Network and Foundation Medical Staffing.  >>Read more

Onward and Upward for Urgent Care

Steady Growth...is the trend for urgent care centers in the US - based on the results from the 2012 Urgent Care Benchmarking Study.  Approximate growth from 2008-2010 was 300 centers per year.  In 2011, the growth rate nearly doubled and 80% of urgent care centers reported an increase in patient visits.  The study will soon be released by the Urgent Care Association of America (UCAOA), the industry arm providing leadership, education and resources for its members. 
Source:  Urgent Care Association of America

New Owner for Performance Health

Performance Health, a company marketing the highly recognized brands Thera-Band and Biofreeze, has a new owner.  Gridiron Capital acquired the company known for its rehabilitation and wellness products and familiar to practitioners in physical therapy as well as chiropractic, podiatry and massage. >>Read more 

Assn Seeks EHR Data Standards

With the rapid deployment of electronic health record systems, there'a a concern about the ad hoc way in which health care data management processes and procedures are being developed.

This has led the American Health Information Management Association to convene stakeholders and focus on establishing guidelines to ensure data integrity, patient safety, quality and the prevention of billing errors.  Stakeholders at the November meeting will include health care professionals, health plans, quality organizations and vendors as well as the Dept. of Health and Human Services. This comes at a time when federal and state regulators are cracking down on billing fraud and data privacy and security.  >>Read more

KRG Platform Investment...Infusion Therapy

A provider of home infusion therapy services, Home Solution Holdings LLC, was acquired by private equity firm KRG Capital Partners – reflecting another KRG health care platform investment.   In 2007, Flexpoint Ford recapitalized and combined two companies (Home Solutions and American Infusion Holdings) under the Home Solution banner.  Under leadership of founder Todd Timbrook, Home Solutions has grown to 400 professionals serving the Northeast and Mid-Atlantic regions.  >> Read more  According to KRG managing partner Steve Neumann, 

“Across the country the demand is high for quality providers of home infusion services as cost-containment pressures continue to drive a shift from institutional care to the home environment.”

Growth Investment for IMS

Inpatient Medical Services (IMS), a Midwest outsourced hospitalist management company, serving 150,000 patients annually was acquired by Sverica International.  IMS, founded in 2000 and based in Akron, Ohio partners with hospitals and primary care doctors to improve efficiency, clinical outcomes and transitions of patient care.  Sverica’s investment and operationally-oriented approach is expected to aid IMS in its next growth phase.  >>Read more  

About Time for a PE Spending Spree?

US private equity funds raised $130.1B (326 funds) in the first three quarters of 2012.  Impressive...as this amount nearly matches the capital raised in all of 2011 ($131.5B).  

"Although it's far from easy to raise capital today, more private equity firms have the wind at their backs than [they] did even a year or two ago." said Laura Kreutzer, managing editor of Dow Jones Private Equity Analyst.  

Europe is also enjoying an upswing with a 20% increase in capital raised through the first three quarters of 2012 over last year.  >>Read more    

While current funding continues to be robust, US private equity executives face a ticking clock over funds raised in 2007 and 2008.  Nearly $200B needs to be spent within the next 12 months or it must be given back according to a recent NY Times article "More Money Than They Know What to Do With".

Due to economic uncertainty, there has been a "wait and see" approach to deal making.  However, the looming deadline is prompting a more proactive approach with firms realizing that it’s time to spend...  Clearly, firms are on the trail of the deal, with some engaged in “elephant hunting”, that is, seeking deals worth $10B. Collectively, PE firms have already spent $45B in the third quarter alone according to deal tracking source, Capital IQ. In this environment, Sellers are the Winners...as inflated acquisition prices are a likely result with so much competition for a limited number of deals.  

Keep an eye out for mega deal headlines...and an accelerated pace for deals. 

ATI Bridges East & Midwest with Acquisition

The Motion Hand & Physical Therapy moniker changed on October 1 with its acquisition by ATI Physical Therapy.  The 10-clinic practice increases ATI’s office count to 190 and extends their coverage into Ohio.

“We are especially excited about our expansion into Ohio as it will bridge the geographical gap between our Midwest and East Coast divisions.” according to Greg Steil, ATI CEO.

Dialysis Clinic Platform Formed

Flexpoint Ford, a private equity firm, has formed Corva LLC, a platform focused on acquiring, developing, and operating dialysis clinics. Jerry Simonsen, former CEO of Renal Management Inc., will lead the company which has already acquired Innovative Renal Care – a Houston, Texas-based dialysis center.  Flexpoint plans to invest up to $75 million to support Corva's strategy. 

Corva (www.corvaclinics.com) is headquartered in Greenwood Village, CO (Greater Denver area).  >>Read more

PSS World Medical Sells Specialty Line to PE Firm

PSS World Medical, a medical products distributor to US physicians, reached an agreement to sell their specialty dental business to Beecken Petty O’Keefe & Company.  The sale proceeds will be used for future investments in other business lines – Physician, Lab, Dispensing and Hope Care & Hospice.  The transaction is expected to close in October.  >> Read more

EHR Set up...Don't Alienate Your Patients

According to various surveys, 70%-80% of medical practices (double the rate of 3 years ago) are currently implementing an EHR system.  While many view this solely as a technology-focused project, people and ill-defined processes can also derail a smooth implementation.  The AMA outlined some common issues and how to overcome them.  >> Read more

Source:  amednews.com (American Medical News)