Orthopedic investments in Q3 + how ASCs can benefit from private equity attention

Two new private equity platforms were established in the orthopedic sector in the third quarter of 2019, according to Provident Healthcare Partners' "Q3-2019 Physician Services Update."

Two transactions took place in the orthopedic sector in July: Revelstoke Capital Partners' acquisition of Cincinnati-based Beacon Orthopaedics and Sports Medicine, and Kohlberg & Co.'s acquisition of Greenwich, Conn.-based Orthopaedic Neurosurgery Specialists.

With 27 physicians, Beacon Orthopaedics and Sports Medicine operates eight locations throughout Indiana, Kentucky and Ohio. Orthopaedic Neurosurgery Specialists employs 26 physicians at three locations in Connecticut and New York.

In August, Audax Group and Linden Capital Partners acquired Phoenix-based The Core Institute, which has 88 physicians across 25 locations in Arizona and Michigan.

As joint replacement volumes rise, the U.S. population ages, and surgical technology becomes increasingly precise, PE firms are seeing orthopedic investment as a lucrative opportunity, according to Maria Todd, PhD, director of business development at St. George (Utah) Surgical Center.

Dr. Todd said the surge in orthopedic PE deals will only help ASCs. "ASCs will soon be reinforced by private equity investments, and hospitals may need to rethink all those orthopedic practices they purchased and surgeons they've hired." Click here to read more of her insights.

More articles on orthopedics/TJR:
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3 ASCs reaching total joint procedure milestones

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