Report: Private equity firms fueling clinic growth
NEW YORK — Driven by the need for consumers to have access to convenient, cost-effective and quality healthcare services, the number of walk-in health clinics has been on the rise across the country in recent years, and according to a Reuters report, private equity firms are helping to fuel the expansion.
In recent years, at least a dozen private equity firms have invested millions of dollars into urgent care clinics and several private equity executives reportedly told Reuters that they are eager for more acquisitions.
Citing Thomson Reuters data, the article states that private equity firms invested $4 billion in 2012 in health and medical services, which include urgent care, up from $3.5 billion in 2011.
One such example is WellStreet, a chain of walk-in health clinics in Georgia. According to Reuters, Aaron Money of San Francisco-based private equity firm, FFL teamed up with physician Lee Resnick to start WellStreet and, today, FFL owns 70% of the business.
Money told Reuters that he expects business to grow as health reforms under the U.S. Patient Protection and Affordable Care Act kick in.
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