TeamHealth Holdings Inc. (NYSE: TMH) has acquired Wolverine Anesthesia Consultants Inc.
Orlando, Fla.-based Wolverine provides anesthesia care and pain management services at three hospitals and one surgery center in Florida. Terms of the transaction remain undisclosed. The deal closed on Nov. 8.
TeamHealth, headquartered in Knoxville, Tenn., provides hospital-based clinical outsourcing for anesthesia, hospital medicine and emergency medicine. In October, the company bought Mesa Medical Group, which manages and staffs emergency medicine and hospital medicine programs.
“There are really four major specialties that are practiced in the hospital that require staffing those are emergency, hospitalist, anesthesia and radiology. TeamHealth and several other companies are endeavoring to offer most, if not all of those specialties to their hospital base,” says Jeff Swearingen, managing director of Edgemont Capital Partners LP, which led the transaction for Wolverine.
Consolidation among hospital-based specialties has been occurring for several years and isn’t primarily driven by the Affordable Care Act, but has accelerated in the last year to 18 months because of some of the ACA’s requirements, including information technology, according to Swearingen.
“As a result they are seeking to partner with larger, well-capitalized organizations that can better meet the potential needs of the ACA,” Swearingen says.
The sale process took roughly six months and was very competitive, according to Swearingen.
Swearingen and Luke Mitchell of Edgemont acted as financial adviser to Wolverine. Brent Hill and Amanda Jester of Waller Lansden Dorth & Davis LLP provided legal advice to Wolverine on the deal.
Other similar deals include Mednax Inc.’s (NYSE: MD) acquisition of Dayton Newborn Care Specialists Inc.