Edgemont Capital Partners Completes Sale of New Jersey Anesthesia Associates to MEDNAX
Healthcare investment banking firm serves as exclusive financial advisor to NJAA, one of the largest independent anesthesia physician groups in the Northeast
NEW YORK and LIVINGSTON, N.J., September 28, 2015 — Edgemont Capital Partners, LP, a leading independent investment banking firm providing healthcare M&A advisory services to healthcare companies, today announced that it has acted as exclusive financial advisor to New Jersey Anesthesia Associates, PC and its affiliated management company, Health Network Management, LLC (collectively “NJAA”) in its sale to MEDNAX, Inc. (NYSE: MD). Terms of the transaction were not disclosed.
NJAA, established in 1996, provides anesthesia department management and staffing for Saint Barnabas Medical Center and Newark Beth Israel Medical Center, two of the largest health care providers in New Jersey, as well four ambulatory surgery centers and five outpatient facilities, and chronic pain services at five pain centers. The transaction closed on September 25, 2015. Jeff Swearingen, managing director, co-founder of Edgemont, and head of the firm’s Physician Services Group, led the Edgemont engagement team, along with Luke Mitchell, Vitaliy Marchenko and Anish Dalsania. Brent Hill and Amanda Jester of Waller Lansden Dortch & Davis, LLP acted as legal counsel to NJAA in the transaction.
“Physician practice consolidation has accelerated in 2015 as the rollout of the Patient Protection and Affordable Care Act continues to create upheaval, increased complexity, and financial pressure 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 greater management depth, better access to capital, economies of scale, IT and other expertise to support physician practices. We believe this trend will continue and the pace of consolidation will accelerate,” said Mr. Swearingen.
The sale of NJAA is Edgemont’s sixth closed transaction on behalf of hospital-based physician groups and management companies and fourth in anesthesia. Edgemont has now served as exclusive advisor to anesthesia practices and management companies that account for approximately 400,000 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); and Wolverine Anesthesia Consultants in its sale to TeamHealth Holdings Inc. (NYSE: TMH). Edgemont also advised Premier Physician Services, Inc. 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 success in advising physician practices,” added Mr. Swearingen.
NJAA employs 90 full-time clinicians (70 anesthesiologists, 13 anesthetists, two nurse practitioners and five physician assistants) that provide a full spectrum of anesthesia services at Saint Barnabas Medical Center (SBMC), a 577-bed non-profit teaching hospital, and Newark Beth Israel Medical Center. SBMC is the oldest and largest non-profit, nonsectarian hospital in New Jersey, serving more than 32,500 inpatients annually and together with Barnabas Health Ambulatory Center, more than 300,000 outpatients annually.
Both hospitals are part of Barnabas Health, New Jersey’s largest integrated health care delivery system. In addition, the practice provides anesthesia services at four ambulatory surgery centers and five outpatient facilities, and chronic pain services at five pain centers.
NJAA provides services in collaboration with highly advanced acute-care programs at Barnabas Health. The practice’s anesthesia services include general anesthesia, cardiac, obstetric, transplant, critical care, chronic pain and acute pain management for post-operative pain. More than 20 of NJAA’s physicians hold advanced training in anesthesia sub-specialties, particularly cardiac and pediatric anesthesia, or multiple board certifications. NJAA also supports the health system’s advanced care programs through cardiac anesthesia fellowships, residency programs, management of post-operative care of cardiac surgery patients, and participation in a perioperative surgical home collaborative.
“Edgemont’s anesthesia industry knowledge and transaction expertise allowed NJAA to realize an exceptional result that exceeded our expectations,” said Dr. Rae Pak, Chief Executive Officer of NJAA. “Jeff and the Edgemont team possess a deep understanding of anesthesia services and their commitment to achieving the best outcome allowed our shareholders to maximize value and to partner with an industry leader that provides long term stability for our providers and staff.
“We selected Edgemont over other firms we interviewed based on their proven track record in anesthesia services, renowned client service and the clear expertise they demonstrated during our investment banker evaluation process. The success of this transaction confirms that we made the best possible choice in electing to retain Edgemont as our M&A advisor,” Dr. Pak said.
About Edgemont Capital Partners, L.P.
Edgemont Capital Partners, LP (www.edgemontcapital.com) is a leading independent investment banking firm founded in 2001 providing the highest quality strategic advisory and capital raising services to healthcare companies. The firm’s deep healthcare industry knowledge, broad relationship network and extensive transaction expertise allows Edgemont to address healthcare companies’ strategic and financing needs with great success. The firm’s principals have closed over 100 transactions, representing more than $30 billion in value.
For more information on Edgemont’s efforts in Physician Services contact Jeff Swearingen at +1 (212) 867-8938.
Investment banking services are provided by Edgemont Capital Partners, LP, a registered broker-dealer and member of FINRA and SIPC.