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The Healthcare Investor

Insights on Issues & Trends that Impact Investments in Healthcare & Life Science Businesses

Healthcare & Life Sciences Private Equity Deal Tracker: Kelso Acquires Physicians Endoscopy From Pamlico Capital

Posted in Healthcare Services Investing

Pamlico Capital has announced it has sold Physicians Endoscopy to Kelso & Company.

Pamlico Capital, based in Charlotte, N.C., and formerly Wachovia Capital, is an independent PE firm focused on buyout and growth equity investments in lower-middle-market businesses.

Kelso, based in New York, is a private PE firm focused on North American middle-market investing.

Physicians Endoscopy (PE), based in Jamison, Pa., is a developer, owner and manager of endoscopic surgery centers. PE currently owns and manages 42 facilities in partnership with over 300 gastroenterologists and 18 health systems.

Terms of the transaction have not been disclosed.

Healthcare & Life Sciences Private Equity Deal Tracker: Linden Capital Partners Acquires Pinnacle Treatment Centers

Posted in Healthcare Services Investing

Linden Capital Partners has announced it has completed its acquisition of Pinnacle Treatment Centers.

Linden, based in Chicago, focuses on leveraged buyouts in the healthcare and life sciences industries.

Pinnacle, based in Mt. Laurel, N.J., is a provider of inpatient and outpatient treatment for people suffering from substance abuse addiction.

Terms of the transaction were not disclosed.

HIPAA Hat Trick: Security Violations Lead to Three Major Settlements

Posted in Healthcare Services Investing

A recent piece published by our McGuireWoods colleagues Nathan Kottkamp and Lauren Ramos is a good reminder for investors about the real risk of HIPAA violations.

HIPAA violations are among the most frequent issues we see in healthcare private equity deal diligence, and we are very comfortable taking a practical and realistic approach to rectifying the noncompliance.

To access the column, click here.

Chicago Pacific Founders Closes Inaugural Fund at $325 Million

Posted in Healthcare Services Investing

Chicago Pacific Founders has announced it has closed its debut fund.

The fund was oversubscribed at its $325 million hard cap.

Chicago Pacific Founders, based in Chicago, primarily invests in middle-market healthcare companies focusing on care service delivery.

The firm has deployed capital along three investment platforms to date: CPF Living Communities, Marquee Dental Partners and Recovery Ways.

Healthcare & Life Sciences Private Equity Deal Tracker: Warburg Pincus to Acquire Stake in Hygenia

Posted in Life Sciences Investing

Warburg Pincus has announced it will invest in Hygenia.

Warburg Pincus, headquartered in New York, is a PE firm that takes a long-term perspective and invest in businesses at all stages of development. It invests healthcare and several other sectors.

Hygenia, based in Camarillo, Calif., is a microbiology and life science company that serves healthcare and other sectors. It manufactures and sells a range of rapid hygiene monitoring systems, environmental collection systems and rapid dilution devices.

Terms of the transaction were not disclosed.

Healthcare & Life Sciences Private Equity Deal Tracker: Thoma Bravo to Acquire Healthcare IT Security Company Imprivata for $544 million

Posted in Healthcare Services Investing

Thoma Bravo has announced it will acquire Imprivata for approximately $544 million.

Thoma Bravo, with offices in Chicago and San Francisco, is a PE firm that invests with a particular focus on application and infrastructure software and technology-enabled services.

Imprivata, based in Lexington, Mass., is a healthcare IT security company founded in 2002. The company says its platform addresses critical compliance and security challenges while improving productivity and the patient experience.

Healthcare & Life Sciences Private Equity Deal Tracker: RoundTable Healthcare Partners Completes Acquisition of Symmetry Surgical

Posted in Healthcare Services Investing

RoundTable Healthcare Partners has announced it has closed on its acquisition of Symmetry Surgical.

RoundTable is an operating-oriented firm focused exclusively on the healthcare industry. The company, based in Lake Forest, Ill., targets middle-market investments.

Symmetry Surgical, based in Antioch, Tenn., is a marketer of reusable, reposable and single-use surgical instrumentation and specialty devices.

Symmetry represents the second equity investment from RoundTable’s $650 million Fund IV.

Learn more about RoundTable and other leading PE firms that invest in healthcare here.

HIPAA Enforcement on the Rise

Posted in Healthcare Services Investing

After a number of years of little HIPAA enforcement activity, the tides appear to be turning.

From September 2015 through April 2016, HIPAA settlements have averaged more than one a month. The dollar amounts involved are significant, ranging from $240,000 to nearly $4 million.

That’s not all. The HHS Office for Civil Rights (OCR) has begun its second phase of audits of covered entities (CEs) and their business associates. Unlike the first round of HIPAA audits, the second round may result in disciplinary actions. The OCR is under pressure to become more proactive than reactive following release of a study from the Office of Inspector General and accompanying recommendation that OCR should strengthen its oversight of covered entities’ compliance with the Privacy Rule.

It is not uncommon to find HIPAA noncompliance in acquisition targets in a healthcare transaction. We are always conscientious to help investors find practical methods for assessing risk of target noncompliance and create effective compliance going forward.

Healthcare & Life Sciences Private Equity Deal Tracker: Bain Capital to Acquire Majority Stake in Navicure

Posted in Healthcare Services Investing

Bain Capital Private Equity will acquire a majority stake in Navicure, according to a Navicure press release.

Bain Capital, based in Boston, targets investments in healthcare and several other industries.

Navicure, based in Duluth, Ga., is a provider of cloud-based healthcare claims management and patient payment solutions.

The transaction is expected to close in July. Terms were not disclosed.

Leonard Green & Partners Close $9.6B PE Fund

Posted in Healthcare Services Investing

Leonard Green & Partners has announced it has closed the firm’s seventh PE investment fund with committed capital of $9.6 billion.

Leonard Green & Partners, founded in 1989 and headquartered in Los Angeles, seeks to invest in companies considered leaders in their markets.

Sectors of focus for the new fund, Green Equity Investors VII, include healthcare/wellness and several others.