Opportunities & Early Investors in the Cardiology Practice M&A Space
Cardiology is in the early stages of consolidation, with the market beginning to attract private equity interest and outside capital investment. Favorable secular trends, fragmentation, and the opportunity for platform growth through practice consolidation and service line expansion are draws.
National Cardiovascular Partners (NCP) is regarded as a first mover and one of the early cardiology platforms to receive private equity backing. NCP provides outpatient endovascular, vascular, and cardiovascular services. The business, which received growth capital from an investor consortium led by Bain Capital Ventures, was sold to Fresenius Medical Care in October 2014. At the time of the sale, the business reported projected revenues in excess of $200 million.
NCP continues to expand its delivery network through strategic partnerships and acquisitions. In May 2021, the company announced the formation of a joint venture in partnership with Anderson Heart and Azura Vascular Care to pursue a growth strategy of physician recruitment and providing high-quality medical care to patients throughout South Carolina, according to the transaction announcement. Today, the NCP network comprises 25 locations in 7 states. The company promotes itself as the market leader of the outpatient, hybrid cardiovascular center (ASC/OBL) model.
In addition to NCP, a number of facility developers have entered the market exclusively focused on developing cardiovascular ASC and hybrid ASC/OBL models. Recently, Surgical Care Affiliates, a subsidiary of Optum Health, acquired St. Louis Cardiovascular Institute and St. Louis Specialty Surgery Center. BGL advised St. Louis Cardiovascular Institute and St. Louis specialty surgery center in this transaction. Groups like Cardiovascular Centers of America (CCA), featured in our roundtable discussion on Page 15 of our new Healthcare and Life Sciences Insider, are helping cardiologists offload the burdens of developing and managing these centers, allowing physicians to focus on the provision of care.
On another end of the cardiovascular spectrum, groups like Vein Clinics of America and Center for Vein Restoration are focused on varicose and spider vein treatment. These groups have received investment from financial sponsors Frazier Healthcare Partners and Cortec Group.
Varsity Healthcare Partners (Partners First Cardiology), Ashlar Capital (Cardiothoracic & Vascular Surgical Associates), Alvarez & Marsal Capital (Nevada Heart & Vascular), Silversmith Capital Partners (US Health Partners), Webster Equity Partners (Cardio-vascular Medicine), Deerfield Management Company (Novocardia), and Assured Healthcare Partners (Cardiovascular Health Partners) are among the private equity funds to announce new platforms in the space. Athyrium/Comvest Partners (IMC Health/Sunset Cardiology) and Beecken Petty O’Keefe (Clarmedica) have also invested in Cardiology with a focus on integrated care from PCPs to specialists, recognizing the need for bottom-up, integrated preventive care for cardiovascular patients. Sponsors are actively seeking complementary acquisitions to build size and scale through geographic and service line expansion. Read the full roundtable for more market insights from Varsity Healthcare Partners and Cardiovascular Centers of America.
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Led by John C. Riddle, BGL’s Healthcare & Life Sciences team has the investment banking and capital markets experience to advise clients across a broad spectrum of physician practice M&A, capital markets activities, and strategic assignments. To learn more about how we can help with strategies for valuing a physician practice, selling a physician practice, buying a physician practice, or other alternatives to help you reach your goals, please reach out via the contact form below.