A relatively new sector to experience the wave of private equity investment, orthopedics has begun to show signs of being the next “hot sector.” Sharing similar qualities to other successfully consolidated specialties such as dermatology and ophthalmology, a mixture of provider fragmentation, high infrastructure costs (surgical hospitals, imaging, etc.), and profitable ancillary services, has orthopedics on the forefront of many private equity minds.
With only 12 existing platforms, the industry is still ripe for groups around the country to capitalize on a first-mover advantage. Many major metro markets remain untouched by private equity, creating an opportunity for forward-thinking orthopods to partner with private equity sponsors to be in the driver’s seat of consolidation in their region.
Select Recent Private Equity Transactions in the Orthopedic Space
Date
Target
Platform
PE Sponsor
State
March 2021
Jackson Anesthesia Pain Center
US Orthopaedic Partners
FFL Partners
Mississippi
March 2021
Oxford Orthopaedics
US Orthopaedic Partners
FFL Partners
Mississippi
February 2021
Orthopaedic Associates of Manhasset
Spire Orthopedic Care
Kohlberg & Company
New York
January 2021
Bluegrass Orthopedics
Bluegrass Orthopedics
Trivest Partners
Kentucky
January 2021
Center for Bone & Joint Surgery of the Palm Beaches
HOPco
Linden Capital
Florida
December 2020
US Orthopedic Alliance
USOA Orthopedic Alliance
Castleford Capital
California
September 2020
Mississippi Sports Medicine
US Orthopedic Partners
FFL Partners
Mississippi
August 2020
OrthoCincy
OrthoAlliance
Revelstoke Capital
Ohio
August 2020
Reconstructive Orthopaedics & Sports Medicine
OrthoAlliance
Revelstoke Capital
Ohio
February 2020
Tallahassee Orthopedic & Sports Physical Therapy
Confluent Health
Partners Group
Tennessee
January 2020
Precision Orthopedics & Sports Medicine
Precision Orthopedics & Sports Medicine
Cobepa
Maryland
December 2019
Florida Spine and Pain
Orthopedic Care Partners
Varsity Healthcare
Florida
November 2019
The Steadman Clinic
Orthopedic Care Partners
Varsity Healthcare
Colorado
October 2019
South Island Orthopedics
Health Plus Management
Investcorp
New York
July 2019
Beacon Orthopaedics & Sports Medicine
Beacon Orthopaedics & Sports Medicine
Revelstoke Capital Partners
Ohio
July 2019
Southeast Orthopedic Specialists
HOPCo
Frazier Healthcare
Florida
July 2019
Orthopedic and Sports Therapy Institute
Cora Physical Therapy
Gryphon Investors
Illinois
July 2019
Orthopaedic & Neurosurgery Specialists
Spire Orthopedic Partners
Kohlberg & Company
Connecticut
May 2019
Citrus Orthopaedic & Joint Institute
Orthopedic Care Partners
Varsity Healthcare
Florida
May 2019
Ocala Orthopedic Care
Orthopedic Care Partners
Varsity Healthcare
Florida
May 2019
James B. Duke, M.D.
Orthopedic Care Partners
Varsity Healthcare
Florida
December 2018
Florida Spine and Joint Institute
Florida Spine and Joint Institute
Trive Capital
Florida
November 2018
Precision Spine Care
Roseland Management
Bow River Capital
Texas
August 2018
OrthoBethesda
OrthoBethesda
Atlantic Street Capital
Maryland
November 2017
The Orthopaedic Institute
Orthopedic Care Partners
Varsity Healthcare
Florida
With new platforms being announced each quarter, PGP expects to see an uptick in add-on transactions throughout 2021 as existing groups look to increase local density and expand into new geographies.
Physician Growth Partners
Physician Growth Partners is a firm that recognizes and prioritizes the importance of clinically focused outcomes, first and foremost. The groups that allow us to advise them will attest to the fact that we always emphasize partnership over economics. When the highest level of care is delivered, financial success will always follow.