PE HUB Healthcare Wire Highlights, 5.30.19

Will the buzz around ‘Social Determinants of Health’ translate to PE investment?

Hi, everybody!

Happy middle of 2019. … Whaaat? How does your post-MDW pipeline look?

If you’re looking for a juicy summer podcast to pass the time on your next weekend drive out of the city, look no further.

What I’m listening to: The Shrink Next Door. The podcast about the Hamptons psychiatrist that manipulates and defrauds his celebrity and Manhattan elite patients. Crazy stuff.

All right, healthcare enthusiasts, to the hard news. Deals. Deals. Deals.

In the first three-way partnership of its kind — among PE, a Catholic health system and a revenue-cycle-management business — Golden Gate Capital secured a slight majority stake in Bon Secours Mercy Health’s fast-growing subsidiary, Ensemble Health. The deal is valued upward of $1.5 billion, I am told.

Mercy bought Ensemble only three years ago for $110 million including an earnout. Find me a private equity firm that can generate that kind of return.

Elsewhere, Amulet Capital is buying and merging three Pennsylvania GI groups in a $130 million deal, while the sales process for Linden– and Northlane– backed Advarra is in its first rounds. Read my story for the latest.  

But today I’m talking about one of sponsors’ favorite recent buzzwords or, perhaps more accurately, concepts or themes. Either way, it’s a term I’ve been hearing on and off this year.


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