The focus of the partnership is highly tailored to SSI and the region. Its goals are to offer convenient locations for patients to seek treatment and ancillary services so that SSI can provide the highest level of care to a broader range of communities in the region.
Candescent Partners has significant experience with healthcare private equity financing. It made the first investment in the ophthalmology space with its platform, Claris Vision, back in 2014.
In addition to its investments in eye care, Candescent has collaborated with dental, dermatology, and women’s health practices (Aspen Dental, Dermatology Associates, and Solis Women’s Health, respectively). The firm is very comfortable working with physicians and has years of experience growing multi-site physician practices.
In November, Varsity Healthcare Partners (Varsity) completed a transaction with Gainesville, Florida-based Orthopaedic Institute. The Orthopaedic Institute is a 33 physician, 6 location orthopedic practice that offers its patients general orthopedic services including walk-in clinics, ambulatory surgery centers (ASCs), physical therapy, and many other ancillary services.
As one of the largest orthopedic providers in the state of Florida, The Orthopaedic Institute will leverage the expertise and experience of Varsity to grow in their region and beyond.
Varsity Healthcare Partners has established itself as one of the most successful investors in physician services and has a strong track record of working with physician-led teams.
With successful exits in the ophthalmology and dermatology spaces (EyeCare Services Partners and Forefront Dermatology, respectively), Varsity has a deep understanding of how to grow a multi-site, provider-based business.
Varsity and The Orthopaedic Institute plan to aggressively expand their geographic footprint over the next three to seven years (average investment horizon for a private equity group).
Typical with any private equity investment into a physician group, Varsity’s approach to accomplish this will include making acquisitions of independent orthopedic practices in surrounding geographies and rolling them into The Orthopaedic Institute platform. In addition, the partnership will look to expand the breadth of ancillary service offerings across the entire network of locations.
While Candescent Partners and Varsity Healthcare were the first two private equity groups to enter orthopedics, there are dozens of other firms with similar levels of expertise and experience.
Over the next 12 to 18 months these firms will be actively looking for strong orthopedic practices to partner with and grow. Given the uncertainty surrounding reimbursement and the direction of healthcare, partnering with a private equity group may not only be the best financial decision for many groups, but the best strategic one as well.
For more information, contact Mr. Aprill at Provident Healthcare Partners. He can be reached at raprill@providenthp.com or (617) 742-9800.
