“The key to successful physician practice management is self-control on the sell-side and being reasonable about compensation,” observes John Tiedmann, a managing director at Physician Growth Partners, in this conversation with host Geoff Cockrell. With over 70 deals across various medical specialties, John describes how PPM investments have evolved from pure growth to facing challenges in physician alignment and compensation structures.

The discussion highlights emerging pharmaceutical distributors as strategic buyers for large platforms and explores how compensation models are adapting to ensure sustainable practices. Despite recent headwinds, he remains bullish on the sector’s future as platforms correct alignment issues and valuation expectations normalize.

Cressey & Company has announced an investment in Paradigm Health. 

Paradigm, founded in 2013 and based in Indianapolis, provides hospice and palliative care services across six branches in Indiana.

Cressey, established in 2008 and with offices in Chicago and Nashville, seeks control and minority equity investments exclusively in healthcare. The firm considers a wide range of investments in middle market companies.

Paradigm management and existing investor, Havencrest Capital Management, invested alongside Cressey.

Terms of the investment were not disclosed.

“Underwriters are more willing to take creative approaches now than they would have been in the last couple of years,” observes Hannah Ellithorpe, executive director and head of healthcare and life sciences at Atlantic Global Risk. The former M&A attorney shares with McGuireWoods partner and host Geoff Cockrell how the representation and warranty insurance market has evolved toward more flexible coverage terms at lower costs.

Hannah details how softening market conditions have created opportunities to secure previously unattainable regulatory compliance coverage and discusses emerging products specifically designed for healthcare providers serving vulnerable populations.

NexPhase Capital has announced its acquisition of Behavior Frontiers.

Behavior Frontiers, founded in 2004 and based in El Segundo, California, is a provider of applied behavior analysis treatment services for individuals with autism and other special needs. 

NexPhase, founded in 2007 and based in New York, is a lower middle-market private equity firm that seeks control buyouts in companies operating in three industry verticals: healthcare, software and consumer. The firm targets equity investments between $40 million and $150 million.

Terms of the acquisition were not disclosed.

“The hot topic right now is how AI fits into dental marketing,” says Ryan Torresan, chief marketing officer at Peak Dental Services. With 14 years of experience across multiple dental service organizations (DSOs), Ryan predicts AI will be a market “leveler” that benefits large and small practices while blurring traditional lines between marketing and operations functions.

Tune in for his insights about new markets, creating efficient lead generation systems and measuring marketing success with McGuireWoods partner and host Geoff Cockrell.

Madison Dearborn Partners (MDP) will acquire a “significant” ownership position in NextGen Healthcare, according to a news release.

NextGen, founded in 1974 and based in Atlanta, is a provider of healthcare software services.

MDP, founded in 1992 and based Chicago, pursues management buyouts and structured minority investments. The firm focuses on value-oriented mature businesses and growth-oriented companies in several industries, including healthcare.

Thoma Bravo, which acquired NextGen in a take-private transaction in 2023, will retain a significant ownership position in NextGen.

The deal is expected to close in the second quarter of 2025. Terms of MDP’s investment were not disclosed.

The behavioral health sector encompasses segments from substance abuse  treatment to autism therapy — a breadth of opportunity that Adam Abramowitz, managing director at Intrepid Investment Bankers, explores with McGuireWoods partner and host Geoff Cockrell. Adam details how reduced stigma and increased reimbursements are driving significant market growth, particularly in underserved rural areas.

While discussing industry evolution, he notes a critical shift from out-of-network to in-network insurance strategies driven by institutional investors. Despite considerable private equity activity, he characterizes the market as being in the “middle innings” of consolidation, with substantial unmet demand creating compelling investment cases for mission-driven providers who can deliver care where access is limited.

LLR Partners has announced the close of a new fund.

The fund — LLR Equity Partners VII — closed at $2.45 billion.

LLR, founded in 1999 and based in Philadelphia, makes majority and minority investments in lower middle market technology and healthcare businesses. Within healthcare, the firm pursues investments in healthcare IT, outsourced healthcare services, managed care and provider-based organizations.