Orthopedics Private Equity - Physician Growth Partners

Orthopedics Private Equity – Market Update

Fall 2023


Private equity investment in orthopedics was initially led by Frazier Healthcare Partners’ HOPCo in 2016 and has seen significant interest over the past several years, with currently over eighteen private equity-backed orthopedic platforms.

While M&A activity across healthcare has slowed in 2023, surgically driven physician specialties continue to remain a point of interest for private equity investors due to an aging population, a resulting demand for procedures, and the ability to continue fighting off market headwinds, driving profitable ancillary service line growth. Most recently, OrthoNebraska received a private equity investment from InTandem Capital in August 2023.

Overall, private equity backed orthopedic groups have shifted focus around building density and acquiring add-on acquisitions in current and adjacent markets, with US Orthopedic Partners and Orthopedic Care Partners being extremely active, as evidenced by the transactions chart below.

While each private equity group has its own strategy, with some more successful than others, a number of these platforms have been able to drive value for their affiliated practices through physician recruitment, ancillary service line growth, payor rate enhancements and geographic expansion, among others. Orthopedic groups gain leverage through a wider network of affiliate practices, helping drive costs down through economies of scale, as well as enhanced purchasing power and negotiating leverage when dealing with payors and hospitals. Several private equity backed orthopedic groups are helping their affiliated practices navigate through the push of value-based care.

When evaluating a potential private equity partner, it is critical to consider cultural fit, as well as value, as strategy differs highly from platform to platform. Key aspects such as clinical autonomy, integration, management fees, and governance must be considered to ensure a strong go-forward partnership.

Recently Formed Private Equity Backed Platforms

Recent Private Equity Transactions in the Orthopedic Space

Date TargetPE SponsorPlatformState
October 2023Orthopaedics of BrevardOrthopedic Care PartnersVarsity Healthcare PartnersFlorida
September 2023The Institute for Orthopaedic Surgery & Sports MedicineHOPCoAudax Private EquityFlorida
August 2023OrthoNebraskaOrthoNebraskaInTandem Capital PartnersNebraska
August 2023Somers Orthopaedic Surgery & Sports Medicine GroupHealth Plus Management PartnersInvestcorpNew York
July 2023Orthopaedic Associates of New OrleansU.S. Orthopedic PartnersFFL PartnersLouisiana
July 2023Mid State Orthopaedic & Sports Medicine CenterU.S. Orthopedic PartnersFFL PartnersLouisiana
June 2023American Spine & Orthopaedic InstituteOrthopedic Care PartnersVarsity Healthcare PartnersFlorida
May 2023Advanced Pain Medical CenterOrthopedic Care PartnersVarsity Healthcare PartnersFlorida
March 2023Orthopedic AssociatesUnited Musculoskeletal PartnersWCASTexas
March 2023Precision Orthopaedic SpecialtiesOrthoAllianceRevelstoke CapitalOhio
March 2023Lakeway Ambulatory Surgery CenterGrowth OrthoTrivest PartnersTexas
March 2023Advanced Orthopedics and Sports Medicine InstituteHealth Plus ManagementInvestcorpNew Jersey
February 2023Orthopedic Associates of Dutchess CountySpire Orthopedic PartnersKohlberg & CompanyNew York
February 2023All-Star OrthopaedicsUnited Musculoskeletal PartnersWCASTexas
February 2023OrthoTexasUnited Musculoskeletal PartnersWCASTexas
January 2023Orthopaedic Associates of RiversideUnited Musculoskeletal PartnersWCASIllinois
December 2022Philadelphia Hand to Shoulder CenterHOPCoAudax Private EquityPennsylvania
December 2022Premier Orthopaedic AssociatesAmerican Orthopedic PartnersStone Point CapitalNew Jersey
December 2022Orthopedic Specialists & Sports MedicineOrthoAllianceRevelstoke CapitalOhio
November 2022Orthopedic Center of FloridaHOPCoAudax Private EquityFlorida
October 2022Midland Orthopedic AssociatesUnited Musculoskeletal PartnersWCASIllinois
October 2022Orthopaedic Institute of DaytonOrthoAllianceRevelstoke CapitalOhio
September 2022Georgia Bone and Joint SurgeonsTriumph OrthopedicsShore CapitalGeorgia
September 2022Orthopaedic Associates of ZanesvilleOrthoAllianceRevelstoke CapitalOhio
August 2022Jordan-Young InstituteAligned Orthopedic PartnersAtlantic Street CapitalVirginia
August 2022The Wilsonville Foot Health CenterUnity MSKTrinity HuntOregon
July 2022Orthopedic Foot & Ankle CenterOrthoAllianceRevelstoke CapitalOhio
July 2022Clintonville Foot & Ankle GroupOrthoAllianceRevelstoke CapitalOhio
July 2022Panorama OrthopedicsUnited Musculoskeletal PartnersWCASColorado
July 2022North Texas Orthopedics & Spine CenterNovum Orthopedic PartnersA&M Capital PartnersTexas
June 2022OrthoNeuroOrthoAllianceRevelstoke CapitalOhio
June 2022Orthopedics Specialties of Austin*Growth OrthoTrivest PartnersTexas
May 2022Premier OrthopaedicsHOPCoLindenPennsylvania
April 2022Shady Grove OrthopaedicsAligned Orthopedic PartnersAtlantic Street CapitalMaryland
April 2022Sports Medicine NorthSpire Orthopedic CareKohlberg & CompanyMassachusetts
January 2022JIS OrthopedicsOrthoAllianceRevelstoke CapitalOhio
January 2022Washington Orthopaedics and Sports Medicine*Aligned Orthopedic PartnersAtlantic Street CapitalDC
December 2021Resurgens OrthopaedicsUnited Musculoskeletal PartnersWCASGeorgia
December 2021Arlington Orthopedic AssociatesNovum Orthopedic PartnersA&M Capital PartnersTexas
December 2021Andrews Sports Medicine & Orthopaedic CenterUS Orthopaedic PartnersFFL PartnersAlabama
November 2021Anderson Orthopaedic ClinicM2 OrthopedicsArchimedesVirginia
October 2021Orthopaedic Associates of St. AugustineHOPCoLindenFlorida
* – PGP provided transaction advisory services

About Our Firm

Physician Growth Partners (PGP) is a transaction advisory firm working exclusively with independent physician groups in transactions with private equity.

Differentiated Healthcare Transaction Advisors:

  • Senior partner involvement at every stage of the process
  • Extensive physician practice transaction experience
  • Unmatched relationships with all key private equity and strategic buyers interested in orthopedics
  • Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market clearing valuation

Learn More About Orthopedic Private Equity