Survey says: PPMCs still going strong
The rumored demise of physician practice management companies (PPMCs) appears to have been premature.
According to a new survey conducted by Irving Levin Associates of New Canaan, CT, most of the 306 publicly announced purchases or mergers in of physician groups in 1997 were the result of PPMC activity.
That number is up from 1996, when only 262 deals were struck.
According to The Physician Medical Group Acquisition Report, 507 groups, with more than 27,800 physicians were targeted in 1997. Nearly 87% of those acquisitions were made by PPMCs.
Along with PPMCs, other acquirers noted by the report are hospitals, other medical practices, and even rehabilitation providers.
According to the report, while the prices paid to acquire medical groups has "relaxed" somewhat over the record 1996 levels, "the current pricing levels reflect strong investor confidence in this industry in general and the merger and acquisition market in particular."
Irving Levin Associates also reports that preliminary 1998 figures show a continuation of the trends of 1996 and 1997.
The full survey, which includes descriptions of the 306 transactions and details on the 96 acquirers involved in the market, is available for $395 from Irving Levin Associates. To order a copy, contact them at (800) 248-1668.