Where Orthopedic PE Partnerships Stand in 2020

The allure of high profit margins, ancillary services and an aging population demanding services is driving private equity investors to partner with orthopedic practices. Here are the deals that involved orthopedic practices, according to a list compiled by Becker’s Spine Review.

‘An Unprecedented Runway for Growth’ — Why Mississippi Sports Medicine Formed U.S. Orthopedic Partners

Jackson-based Mississippi Sports Medicine and Orthopaedic Center partnered with private equity firm Thurston Group Oct. 2, establishing U.S. Orthopedic Partners. Glen Silverman, CEO of U.S. Orthopedic Partners and Mississippi Sports Medicine and Orthopaedic Center, discussed why MSMOC sought out a PE partner and elaborated on the vision for the platform.

Healthcare Outcomes Performance Company (HOPCo) Acquires Stryker’s Performance Solutions’ Extensive Value-Based Care Business

Healthcare Outcomes Performance Company (HOPCo) has announced the acquisition of Stryker Performance Solutions’ (SPS) BPCI-A value-based care convener business and segments of SPS’ health system orthopedic service line analytics subscription business. This acquisition now makes HOPCo one of the largest conveners of MSK bundle payment programs and the largest manager of orthopedic service lines in the country, with over 100 hospital and physician practice customers. In this transaction, HOPCo will acquire Episode Performance ManagerTM, SPS’ leading outcomes management software, as well as assume Stryker’s interest in a clinically integrated network based in Buffalo, NY. HOPCo will also be licensing RecoveryCoachTM and the orthopedic Hospital Reported Outcomes analytics tools to provide excellent service and additional tools to customers.

11-Physician Orthopedic Practice Joins Northwestern Medicine

DeKalb, Ill.-based Midwest Orthopaedic Institute became part of Chicago-based Northwestern Medicine Oct. 1. Midwest Orthopaedic Institute’s 11 physicians and more than 80 staff members are now employed by Northwestern Medicine, which also owns and operates the group’s diagnostic and rehabilitation services.

Cape Fear Sports Medicine to Join EmergeOrtho

Beginning October 1, 2020, Cape Fear Sports Medicine will become part of EmergeOrtho, bringing together two of the region’s most respected names in orthopedic medicine. “We are excited about what this new association means for our patients,” said Dale W. Boyd, Jr., MD, founder and president of Cape Fear Sports Medicine. “Both practices have always pledged to maintain the highest standard of patient-focused, quality-driven care. As part of EmergeOrtho, our patients will simply have increased access to a much larger network of care and services in numerous locations statewide.” EmergeOrtho is one of the largest physician-owned, independent orthopedic practices in North Carolina, with offices and services from the mountains to the coast.

Rothman Institute Expands to Central Florida, Attracted by Population Growth and a Dominant Nonprofit Partner

Rothman Orthopaedic Institute is following the lure of fast population growth to Florida, where it will open offices in the Orlando area in partnership with AdventHealth, a nonprofit health system with the largest market share there, the two companies announced Tuesday. Rothman plans to start in Florida next year with 18 physicians and hopes to expand to as many as 50 in five years. The company currently has 194 doctors in 38 offices in Pennsylvania, New Jersey, and New York. AdventHealth has 13 hospitals in its Central Florida division. Its market share in the Orlando market was 43.4% compared with 33.5% for its nearest competitor, Orlando Health, according to a bond offering statement last year.

FFL Partners Invests in U.S. Orthopedic Partners

FFL Partners (“FFL”), a private equity firm focused on growth investments in middle market companies, today announced that it has formed a new orthopedic health services organization, U.S. Orthopedic Partners (“USOP” or “the Company”). The Thurston Group, a Chicago-based private equity firm with a focus on investing in healthcare companies, also invested in USOP. Financial terms of the private transaction were not disclosed. USOP is a full-service, integrated orthopedic care platform that provides the full continuum of musculoskeletal treatment to patients in the Southeastern U.S.

Private Equity Continues to Trend in Orthopedics — 7 Practices That Teamed with PE-Backed Orthopedic Care Partners

Orthopedic Care Partners, backed by private equity firm Varsity Healthcare Partners and the holding company for Gainesville, Fla.-based The Orthopaedic Institute, affiliated with OrthoAspen (Colo.) on Sept. 10. The latest partnership is the seventh that Orthopedic Care Partners has completed in the past 18 months. The management group provides financial liquidity, enhanced resources and capital to affiliated practices. Here are the seven practices that have teamed with OCP so far, according to a list compiled by Becker’s Spine Review.

Kohlberg-Backed Orthopaedic & Neurosurgery Specialists Announces Strategic Partnership

Orthopaedic & Neurosurgery Specialists (ONS) today announced a strategic partnership with Orthopedic Associates of Middletown (OAM), a market leading integrated orthopedic practice based in Middletown, Connecticut. The partnership will facilitate the continued growth of OAM through capital resources provided by ONS, including additional locations and patient-centric care offerings, and marks a milestone on the path of regional growth plans for ONS. With this partnership, the ONS network now includes 34 physicians, 350 employees, and seven locations throughout central and southern Connecticut, including ONS operations in Greenwich, Stamford and Harrison (New York), and OAM facilities in Marlborough, Middletown, North Haven and Westbrook.

5 Orthopedic Practice M&As in the past Month

Here are five mergers and acquisitions announced in the orthopedic space in the past month, according to a list compiled by Becker’s Spine Review.