Physician Medical Group M&A Activity Remained Steady in Q4: 2016, According to Acquisition Data from HealthCareMandA.com

NORWALK, CT – January 17, 2017 – Physician medical group M&A activity remained steady in the fourth quarter of 2016 after an unusually strong second quarter, capping off a strong year, according to new data from HealthCareMandA.com. Deal volume decreased by 8% to 27 announced transactions in the fourth quarter, from 29 in the third quarter, but these 27 acquisitions also represented a 17% increase in transactions from the year-ago quarter, when there were just 23 announced physician medical group (PMG) acquisitions. Of the 27 transactions announced in the fourth quarter, only a few had a disclosed price, which is typical. However, one transaction was for $6.1 billion. That was the acquisition of TeamHealth Holdings by The Blackstone Group, which was the second largest PMG acquisition of the year. Before agreeing to be sold, TeamHealth announced a $311.9 million acquisition of Florida Emergency Physicians, which has approximately 150 physicians and 100 advanced practice clinicians who provide care for 600,000 each year. Other notable buyers in the fourth quarter included Envision Healthcare Holdings, Apollo Medical Holdings, OCH Health and NorthStar Anesthesia with two deals each.

Hospital companies or health systems announced six PMG acquisitions in the fourth quarter, while private equity firms announced three. “With all the uncertainty surrounding the potential repeal and replacement of the Affordable Care Act, Physician Medical Groups realized it will be a difficult future for them, especially for those not in a specialty practice. That is one reason why they have partnered with hospitals,” commented Lisa Phillips, Editor of HealthCareMandA.com, which publishes the data.

All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of HealthCareMandA.com.  For more information, or to order the report, call 800-248-1668.  Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the health care and senior housing M&A markets.

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