Pain Management Private Equity - Physician Growth Partners

Pain Management Private Equity – Market Update

Fall 2023


Pain management has been a slow and steady consolidator of physician practices over the last eight years. The specialty has seen less consolidation than other specialties due to elevated risk of reimbursement changes and the proximity to the opioid epidemic. Groups that lead with clinical excellence and bridge the gap between medication management and complex surgical procedures are seen as attractive assets to private equity and private equity backed platforms. With limited activity in 2022, 2023 has seen eight private equity transactions completed through the first three quarters. Backed by Iron Path Capital, Capitol Pain Institute has been leading the charge, acquiring assets to build density in Texas while growing into Indiana and Colorado. Despite a harsher market for newly created platforms, pain management has seen four new private equity backed platforms formed as of late. We expect the recent investment in pain management to increase add-on acquisition activity in the near future.

Another catalyst driving private equity’s interest in pain management is the move from the inpatient setting to the outpatient setting. Some clinics have been able to open surgical centers or even build out in-office procedure rooms, allowing practices to complete incremental services in-house. As a result, they can generate additional revenue while controlling the care and patient journey with little to no outside forces. The shift in place of service is attractive to practice owners, patients, as well as payors, to enhance care, grow revenue, and lower costs.

Interested in how private equity can help your Pain Management practice?

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Pain Management Private Equity Transactions Map Fall 2023

The ability for pain management practice owners to offer patients a plethora of services in-house such as laboratory tests, certain surgical procedures, imaging, physical therapy, etc., enhances a practice’s overall financial position. These factors continue to support why pain management is experiencing continued interest from PE investors and leading to an increased number of transactions going into 2024.

The higher level of competition in the pain management space should also lead to increased multiples and additional negotiating leverage throughout a transaction for practice owners. Given the increased number of platforms in the space, engaging a trusted advisor like PGP is recommended to help fundamentally understand all strategic options available to pain management practices. As evidenced in the transactions chart below, PGP has advised three pain management practices in just the last 12 months, and we are well equipped to represent practice owners looking to explore their options.

Recent Pain Management Transactions

Date TargetPE SponsorPlatformState
May 2023Water Leaf Surgery CenterIron Path CapitalCapitol Pain InstituteTX
May 2023Balcones Pain ConsultantsIron Path CapitalCapitol Pain InstituteTX
March 2023The Ascent Surgery CenterIron Path CapitalCapitol Pain InstituteCO
March 2023The Peak Physical MedicineIron Path CapitalCapitol Pain InstituteCO
March 2023Spinal Diagnostics and Regenerative MedicineIron Path CapitalCapitol Pain InstituteCO
March 2023Springs RehabilitationIron Path CapitalCapitol Pain InstituteCO
January 2023Indiana Spine & Pain InstituteAmerican Discovery CapitalAmerican Pain ConsortiumIN
January 2023Integrated Pain Associates*Triton Pacific Capital PartnersIntegrated Pain AssociatesTX
December 2022Wellspring Pain Solutions*Iron Path CapitalCapitol Pain InstituteIN
November 2022Commonwealth Pain & SpineAEA InvestorsCommonwealth Spine & PainKY
September 2022Mays & Schnapp Neurospine & Pain*Compass Group Equity PartnersMays & Schnapp NeurospineTN
July 2022Relievus Pain Management NexPhase CapitalClearway Pain SolutionsNJ
July 2022Integrated Pain ConsultantsAsydan Capital ManagementAnodyne Pain SolutionsAZ
June 2022Capitol Pain InstituteIron Path CapitalCapitol Pain InstituteTX
January 2022Centrata Pain CentersTrinity Hunt PartnersCentrata Pain CentersCO
November 2021Insight Physician AssociatesAsydan Capital ManagementAnodyne Pain SolutionsVA
September 2021MidSouth PainShore Capital PartnersPartnercareMS
September 2021Florida Spine & Pain CenterShore Capital PartnersPartnercareFL
 June 2021The Center for Pain NexPhase CapitalClearway Pain SolutionsAL
June 2021Summit Spine & Joint CentersMSouth Equity PartnersSummit Spine & Joint CentersGA
*These practices were advised by PGP

About Our Firm

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

PGP has completed 15+ transactions in the last 12 months. Our firm is differentiated by:

  • 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 Pain Management
  • Educational approach focused on partnership and cultural fit + achieving a market-clearing valuation

Relevant Physician Practice Transaction Expertise

Learn More About Pain Management Private Equity