Press Releases

Edgemont Capital Partners Completes Sale of Associated Anesthesiologists of Reno to MEDNAX

acquired by
August 2016

Leading independent healthcare investment banking firm serves as exclusive financial advisor to AAR, the largest Anesthesia provider in Northern Nevada

NEW YORK and RENO, August 8, 2016 — Edgemont Capital Partners, L.P., a leading independent investment banking firm providing M&A advisory services to healthcare companies, today announced that it acted as exclusive financial advisor to Associated Anesthesiologists of Reno, P.C. (“AAR”) in the sale of the company to MEDNAX, Inc. (NYSE: MD).  The transaction closed on August 5, 2016 and was led by Jeff Swearingen, Managing Director, Co-founder of Edgemont, and Head of the Firm’s Physician Services Group.

Established in 1949, Associated Anesthesiologists of Reno is the largest anesthesia practice in Northern Nevada. The practice provides anesthesia care across a wide spectrum of subspecialty areas, including orthopedic, critical care, obstetric, pediatric and cardiac, and trauma as well as acute pain services. Associated Anesthesiologists of Reno employs 56 full time-anesthesiologists and is the exclusive provider of services to Renown Regional Medical Center, an 808-bed facility, a level 2 Trauma Center, and the only children’s hospital and emergency room in the region. The practice also provides services to Northern Nevada Medical Center, Carson Valley Medical Center and various ambulatory surgical centers throughout the area.

“We wanted to join a national organization that truly understands the importance of hospital partnerships, and one whose culture and commitment to delivering the highest quality patient care parallels our own,” said Matthew Hoberg, M.D., AAR’s current President and CEO. “We developed a relationship with Jeff and the Edgemont team several years before embarking on this sale process and their expert advice and industry insights in the years leading up to and throughout the transaction resulted in a very competitive sale process that brought us an outstanding partner and a fantastic outcome for AAR,” Dr. Hoberg added. “Edgemont served AAR as a true trusted advisor.”

Mr. Swearingen said, “Physician practice consolidation remains at the record levels we saw in 2015 as the rollout of the Patient Protection and Affordable Care Act (“ACA”) and the Medicare Access and CHIP Reauthorization Act (“Macra”) continue to create upheaval, increased complexity, and reimbursement uncertainty in the provision of healthcare services.  This environment has led many anesthesia and other hospital-based specialty practices to sell or merge their practices into larger organizations that offer more management depth, access to capital, greater financial stability and other expertise to support physician practices.  We believe this trend will continue as we are in the early stages of the reshaping of the provision of and reimbursement for healthcare.”

Edgemont’s role as AAR’s exclusive advisor is the firm’s ninth closed transaction on behalf of hospital-based physician groups and management companies and sixth Anesthesia services provider.  Edgemont, a healthcare investment bank, has now served as exclusive advisor to anesthesia practices and management companies that account for approximately 500,000 annual cases. Edgemont previously represented Milford Anesthesia Associates in its sale to Envision Healthcare Holdings, Inc. (NYSE: EVHC); South Oakland Anesthesia Associates in its sale to MEDNAX, Inc. (NYSE: MD); Wolverine Anesthesia Consultants in its sale to TeamHealth Holdings Inc.; New Jersey Anesthesia Associates in its sale to MEDNAX, Inc.; Anesthesia Services Associates in its sale to PhyMed Management, LLC; Premier Emergency Medical Specialists, PLLC (“PEMS”) in its sale to Sheridan, the Physician Services division of AmSurg Corp. (NASDAQ:AMSG); Premier Physician Services, Inc. (of Dayton, Ohio) in its sale to TeamHealth Holdings Inc. (NYSE: TMH); and Practice Support Resources, LLC in its sale to Intermedix Corporation.

“Independent, high quality physician practices of scale are seeking the highest level of quality and experience in the financial advisors they hire.  Edgemont is unsurpassed in its track record of achieving the best transaction outcomes for our independent physician practice clients,” added Mr. Swearingen.  “No other investment banking firm has represented more large and mid-sized independent anesthesia groups in sale transactions and Edgemont is the only investment bank that has represented independent groups in sale transactions with all of the publicly-traded hospital-based specialty providers, including EmCare, MEDNAX, Sheridan and TeamHealth.”

Associate, Vitaliy Marchenko, and two of the firm’s analysts completed the Edgemont transaction team.  Brent Hill and Amanda Jester of Waller Lansden Dortch & Davis, LLP served as legal counsel to AAR.

About Edgemont Capital Partners, L.P.

Edgemont Capital Partners, L.P. (www.edgemontcapital.com) is an independent investment banking firm founded in 2001 to provide the founders, physicians, and entrepreneurs who represent the cornerstones of healthcare provider services the highest quality strategic advisory and capital raising services.  The firm’s deep healthcare industry knowledge, extensive relationship network and substantial transaction expertise allows Edgemont to address healthcare companies’ strategic and financing needs with great success. The firm’s principals have closed over 100 healthcare transactions, representing more than $30 billion in value.

For more information on Edgemont Capital Partners, L.P.’s efforts in Physician Services contact Jeff Swearingen at +1 (212) 867-8938.

Investment banking services are provided by Edgemont Capital Partners, L.P., a registered broker-dealer and member of FINRA and SIPC.