Advisory Resources For Physicians

The current consolidation wave in ophthalmology is still in its early stages, but the speed of change grew significantly in 2017. That acceleration validated our earlier prediction that far-reaching consolidation across the specialty was on the near-term horizon.

Through October of this year, that activity has increased and spread to new areas across the United States creating lucrative transaction opportunities for ophthalmic physician-owners of all practice sizes and locations. Ophthalmologists of all ages will be well served to understand the key fundamentals of this major consolidation wave and how it may impact their personal and professional future.

This fall has already seen two major new entrants join the ophthalmology practice management space, demonstrating continued enthusiasm among private equity investors. With 95% of ophthalmology practices still independent, PE firms see ophthalmology as a specialty with great fundamentals and broad opportunity.

PhysiciansFirst Healthcare Partners is a boutique investment bank representing physician practices and surgery centers. We work hard to stay at the forefront of healthcare M&A activity across the US.

In our final segment of this four-part series, we explore investments in The West, as defined by the United States Census Bureau. Early stage activity in this region is centered in a few highly concentrated acquisition areas, such as Denver and Phoenix. Significant opportunity exists in these cities as new networks seek to expand. Importantly, there are also many strong geographic areas in The West as yet untouched by this new wave of private equity interest and M&A activity.

In Part 3 of our four-part series, we continue our exploration of ophthalmology practice mergers & acquisitions into a new highlighted region, The Midwest, as defined by the United States Census Bureau. The Midwest boasts strong deal flow throughout Michigan and Illinois, as well as the most recently established platform acquisition in Cincinnati, Ohio. PhysiciansFirst Healthcare Partners expects this region to experience significant acquisition activity throughout the remainder of 2018.

PhysiciansFirst Healthcare Partners, the investment bank representing physician practices and surgery centers across the country, remains on the forefront of healthcare M&A activity. In Part 2 of our four-part series, we continue our exploration of ophthalmology practice mergers & acquisitions into a new highlighted region, The South, as defined by the United States Census Bureau. With two private-equity backed platforms recently entering the market in early 2018, The South has become a competitive territory for ophthalmology investment.

It’s no secret that ophthalmology practice mergers & acquisitions exploded in 2017 and the investment momentum has carried into 2018. At PhysiciansFirst Healthcare Partners, we represent ophthalmology practices in all geographic regions of the country. For our clients, it is valuable to know where ophthalmology acquisitions are happening, which private equity groups are behind the portfolio companies, and how their platforms are expanding. In this four-part series, we share our knowledge by focusing on key ophthalmology investments in specific geographic regions. We’ll start with a region experiencing significant private equity activity, The Northeast, as defined by the United States Census Bureau.

Over the past six months, our Advisory Resources writings have focused heavily on private equity investments in ophthalmology practices across the United States. During that time, we have received a growing number of inquiries about private equity’s interest in retina – either as part of a total ophthalmology group or sub-specialty practice. Bottom line, we are seeing increased interest for retina practices from private equity.

As mentioned in our previous post, there are many questions swirling around private equity investments in ophthalmology practices. Some particularly important ones relate to how a transaction will alter the career trajectory of associate ophthalmologists – particularly those with an interest in partnership. Is there upside for physicians who did not participate in the initial equity transaction? Will they ever have an opportunity to gain an equity position in the practice? The answer is yes, and here’s why.

These days, many ophthalmology practices are faced with the challenge of securing their next generation of physician partners. Historically, practices brought in ophthalmology “associates” soon after residency or fellowship, and these associates immediately set their sights on the path to partnership. Although partnership was never guaranteed, it was expected to both reward physician loyalty and, more importantly, ensure practice continuity.

As a physician-owner of an ophthalmology practice, you are probably trying to make sense of the acquisition and outside investment inquiries you’ve received over the past year. Where did all of these potential buyers come from? Who are they, and how do you separate the legitimate acquirers from the tire-kickers?