M&A activity in the Physician Medical Group (PMG) sector rose in Q2:22, reaching 142 publicly announced deals, which is a 5% increase from Q1:22 that saw 135 deals and a 35% increase from Q2:21 that saw 105 deals, according to data from LevinPro HC. This indicates that the PMG M&A market is not only stable but growing. However, while deal quantity shot up, disclosed spending was down by a fair amount. In Q2:22, disclosed spending barely reached $386 million, which is a major reduction from the previous quarter that had more than $1.5 billion in total disclosed sale prices. It is even a decline from Q2:21 that saw $489.2 million in announced prices.
The largest PMG deal of the quarter was UnitedHealth Group’s Optum’s acquisition of physician practice management company Healthcare Associates of Texas for $300 million in enterprise value. The deal with the second-largest price tag was publicly-traded biomedical company Atrys Health acquiring the Spanish oncology group Bienzobas Salud for $80.12 million. Dental, which is typically one of the busiest subsectors, saw 42 transactions, a 50% increase from the previous quarter’s 28 deals. Following dental for the most announced PMG deals was ophthalmology/optometry with 19 deals, accounting for 14% of total PMG acquisitions.
Keeping up with past trends, private equity firms and their portfolio companies drove PMG activity, accounting for 54% of the deals in Q2:22. In Q1:22 PE firms accounted for 76% of the deals, and in Q2:21, they made up 67%. Active acquirers this quarter have been Shore Capital Partners (7 deals), Rubicon Founders (4) and Audax Private Equity (4). On the flip side, health systems made up a small portion of acquirers at just 3%. Read more.
