PE HUB Healthcare Wire Highlights, 9.5.19

Back to school: TPG gets into payer services, VPay presses pause

Hello, healthcare enthusiasts!

Have you missed me?

School’s back in session. I’ve returned from vacay along with many of you—just a little bit tanner and already reminiscing. I have my first fall league softball game this weekend after The Pickles took home the summer league ‘ship in Williamsburg a few weeks ago. Back to the grind.

While I’ve been busy playing catch-up the last couple of days, a handful of situations I followed during the busy summer months in healthcare M&A came to a head.

To start, this morning TPG said it purchased Convey Health from New Mountain Capital, confirming my July report. Read my previous coverage on the healthcare payer services company that, I was told, commanded an approximately $750 million valuation.

Convey, which simplifies processes and ensures compliance for Medicare Part D and Medicare Advantage programs, marks an entry point for TPG as its first pure play healthcare deal in payer services.

That said, TPG Co-Managing Partner Todd Sisitsky told me the buyout firm’s prior investment experience in companies likeSurgical Care Affiliates—whose success was really premised on partnering with local health systems and payers—has underscored TPG’s thinking when it comes to approaching payers and creating value-added plays.

TPG sold SCA to Unitedhealthcare’s Optum unit for about $2.3 billion in 2017.