Becker's Spine Review

34 ASC 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 'It is a conveyor belt': 5 thoughts on the downside to physician employment By Patsy Newitt I n its 2022 "Employed Physicians Report," Medscape surveyed more than 1,350 physicians employed by healthcare organizations, hospitals, large group practices, clinics or other medical groups about their jobs. Here are five quotes from anonymous employed physicians about the downsides of their jobs: "Poor management makes dumb rules." "That we basically pay the salaries for some of the administrators who look over my shoulder is embarrassing, honestly." "I make less than private oncology attendings do. There's the risk of lower pay for not hitting [relative value unit] targets, and I get no compensation for doing other duties related to being an employed physician." "I feel like I only have control over what I do and end up doing extra work that ancillary staff doesn't do or doesn't do correctly." "It is a conveyor belt, not real medicine that is patient care- focused." n Spine surgeon convicted over kickback conspiracy By Marcus Robertson O rthopedic spine surgeon Steven Valentino, DO, of Haverford, Pa., was convicted for a medication kickback scheme with a Houston pharmacy, the Justice Department said Sept. 21. Dr. Valentino, 65, collected kickbacks for referring, ordering and arranging for prescriptions to be filled by a Houston pharmacy, the Justice Department said. From May 2013 to July 2017, the pharmacy billed CMS and a Department of Labor workers' compensation program about $2.5 million. e pharmacy was paid about $1.1 million for medications referred, ordered and arranged by Dr. Valentino and his office manager in exchange for kickbacks, the Justice Department said. e surgeon was convicted of conspiracy to pay and receive healthcare kickbacks, and two counts of receiving them. He faces a maximum penalty of five years in prison. n

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