Physician Medical Group M&A Activity Decreases 14% in Q1:23, According to Data from Irving Levin Associates, LLC


M&A activity in the Physician Medical Group (PMG) sector fell in the first quarter of 2023 to 135 publicly announced deals. This drop represents a 14% decrease from Q4:22 and an approximate 4% decline from Q1:22, according to data captured in LevinPro HC.

In addition to lower deal volume, disclosed spending decreased from previous quarters. Announced spending totaled more than $106.3 million across three deals in Q1:23, a noteworthy drop from $505.1 million in the final quarter of 2022. It was also a decline from Q1:22 that saw more than $1.5 billion in announced prices. The largest PMG deal of the quarter was ASG Eye Hospitals’ acquisition of Vasan Eye Care for approximately $64.3 million.

Dental practices, a popular specialty for investors in the market, saw 44 transactions (approximately 33% of PMG deals), a 28% decrease from the previous quarter’s 61 dental deals. Internal medicine providers were targets in 14 deals, accounting for approximately 10% of deal volume in the Physician Medical Group sector.

Although activity fell in the first quarter, the presence of private equity firms stayed relatively stable. PE firms and their portfolio companies represented 61% of the acquirers in Q1:23 with 82 transactions. This compares to Q4:22 when PE accounted for 66% of buyers. Active PE acquirers this past quarter have been Charlesbank Capital Partners (7 deals), Chicago Pacific Founders (5), Harvest Partners (5) and NMS Capital (4). In contrast to the high deal activity of PE firms, health systems made up a small portion of acquirers at nearly 3% of buyers.

“The physician medical group market is still the hottest sector for investors, from private equity to health systems,” said Dylan Sammut, Editor of Healthcare at Irving Levin Associates. “As demand for outpatient care rises, physician groups will play a critical role in the continuum of care for providers.”

All quarterly results are published in The Health Care M&A Report, which is part of the Irving Levin Associates and LevinPro investment research source. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.