Becker's ASC Review

44 TRANSACTIONS Biggest physician group acquisitions to know By Patsy Newitt P hysician groups are increasingly consolidating, and there was a 145 percent increase in deals from 2020 to 2021, according to VMG Health's "Annual Healthcare M&A Report 2022." Here are the most notable physician group acquisitions since the beginning of 2021 that VMG Health outlined in its report: 1. Mednax acquired nine physician practices for a total of $34.9 million in 2021 — this included a pediatric orthopedic practice, a multilocation pediatric primary and urgent care practice, a pediatric cardiology practice, two pediatric neurology practices, one maternal medicine practice, an OB-GYN practice, a pediatric intensivist practice and a neonatology practice. 2. Well Health acquired CRH Medical in April 2021 for $372.9 million. CRH provides physician services for gastroenterology diseases to 69 ASCs in 13 states. 3. Optum agreed to acquire Atrius Health, which employs 645 physicians and primary care providers, for $236 million in March. Although the acquisition came under scrutiny by the Massachusetts attorney general, the deal was confirmed in 2022. 4. Optum also acquired Kelsey-Seybold Clinic and its 500 physicians in April 2022. 5. Optum continued its "buying streak" with its acquisition of Healthcare Associates of Texas from Webster Equity Partners for $300 million in June 2022. 6. Partners Group purchased a majority stake in Axia Women's Health and its more than 400 providers for $800 million from Audax Private Equity in May 2021. 7. Gastro Health was sold to private equity company Omers in May 2021 — the enterprise value was estimated around $950 million. n Physicians Realty Trust acquires New York medical property, ASC for $81.5M By Alan Condon P hysicians Realty Trust, through a joint venture with Dallas-based MedProperties Realty Advisors, has acquired Calko Medical Center in Brooklyn, N.Y., for $81. 5 million. Four things to know: 1. Built in 2013, the complex is anchored by Maimonides Medical Center and includes the Brooklyn Surgery Center, which Newsweek ranked the fourth-best ASC in New York and the top surgery center in Brooklyn, according to a Sept. 13 news release. 2. Brooklyn Surgery Center is a multispecialty ASC specializing in gastroenterology, orthopedic, general surgery, colorectal surgery, pain management and urology, among other surgical services. 3. Maimonides Medical Center is 100% leased and occupied. Physicians Realty Trust owns 90 percent of the joint venture, with MedProperties owning 10 percent. The stabilized cash yield on the investment is 5.5 percent. 4. The complex also includes an urgent care center, an orthopedic department, a pain management center, an endoscopy program and 30,000 square feet of physician office space. n Pulse Healthcare System to gain majority interest in Crystal ASC By Carly Behm Houston-based Pulse Healthcare System entered an agreement to acquire controlling interest in Crystal Outpatient Surgery Center in the same city. Crystal's ASC has two operating rooms and two procedural suites, according to a Sept. 19 news release from the health system. Pulse Healthcare System has eight family practice clinics, and the acquisition will help add surgical capacity. "Adding Crystal ASC to the Pulse Healthcare System allows us to provide state-of-the-art facilities to the many physicians in the Houston area looking for a surgery center," Smriti Singh, chief strategy officer at Pulse, said in a release. "The current case mix of the center has a desirable allocation among several service lines, including interventional pain, spine, orthopedic, and plastic surgery procedures." n

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