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