More private equity firms have been entering the orthopedic field, which presents lucrative financial opportunities because of the higher-acuity procedures associated with the specialty and the increasing population of older Americans who need them.
Here are five of the most significant private equity transactions involving orthopedic groups in the past three years:
1. Private equity firm Trinity Hunt launched a musculoskeletal practice management platform June 30, 2021, in partnership with Los Angeles Orthopaedic Surgery Specialists and Portland, Ore.-based Northwest Extremity Specialists. Unity MSK provides support services to promote orthopedic practice growth, with future partners maintaining clinical autonomy, identity and brands. The partners aim to expand Unity MSK nationwide and buoy network practice growth. Trinity Hunt has more than $775 million of assets under management.
2. In July 2021, Reno-based Spine Nevada and Tahoe Fracture & Orthopedic Medical Clinic in Carson City, Nev., merged to form the largest musculoskeletal care platform in the state. Tahoe Fracture is joining Spine Nevada under private equity-backed Healthcare Outcomes Performance Co.'s Nevada care network. HOPCo aims to team with musculoskeletal practices, health systems and payors to develop value-based care programs — such as bundled payments, shared savings and population health — that improve quality and reduce the cost of care.
3. The Steadman Clinic in Vail, Colo., partnered in November 2019 with Orthopedic Care Partners, which is now the holding company for eight practices and is backed by Varsity Healthcare Partners, according to its website. Marc Philippon, MD, continues to lead the practice and believes that the affiliation will allow the practice to execute swiftly on its growth plans. Varsity invested additional equity in the practices as a result of the partnership, and Dr. Philippon and his partners have become significant shareholders in Orthopedic Care Partners.
4. Cincinnati-based Beacon Orthopaedics and Sports Medicine launched a national management services organization in partnership with private equity firm Revelstoke Capital Partners in July 2019. Revelstoke added additional resources and investments to the partnership, allowing Beacon to grow. Revelstoke launched in 2013 and has raised about $1.4 billion of equity since then.
5. New York City-based private equity firm Kohlberg & Co. invested in Greenwich, Conn.-based Orthopaedic Neurosurgery Specialists in July 2019. The three-location multispecialty group includes orthopedics, sports medicine, joint replacement and physiatry as well as physical therapy and MRI. The practice's physician owners also operate an ASC and urgent care center. Orthopaedic Neurosurgery Specialists has 26 physicians and plans to continue to grow regionally.