Pine Tree Equity IV, LP (“Pine Tree Equity”), a private equity firm based in Miami, FL, is pleased to announce that it has made an investment in Premier Physician Support Services (“Premier” or the “Company”) in July 2022. The Company, founded in 1998 and headquartered in Miami, FL, is a leading independent provider of primary care physician services primarily to Medicaid eligible patients across 10 counties in South and Central Florida. Premier oversees nearly 30,000 Medicaid and Medicare members through a network of over 90 general practitioners and 65 unique practices. For additional information, please visit www.premierphysicianss.com
The Company provides physician services within the large and growing primary care industry. The total addressable market for primary care services in the United States is $260.1 billion and growing approximately 4.0% annually. Primary care is the center of the United States healthcare system as one in every five office physician visits is made to a primary care physician, accounting for over 192 million visits annually. Continued demand for primary care services is attributed to numerous factors including a rapidly aging population, increased prevalence of chronic diseases, increased access to primary care physicians through telehealth and increased awareness of the importance of preventative care. Managed Medicaid expenditures exceeded $359.0 billion and grew at an average of 8.6% per year through 2020. Florida is the 5th largest Medicaid and 2nd largest Medicare market in the United States with above average penetration for managed Medicaid, resulting in nearly 4.1 million covered patients.
Pine Tree Equity has made an investment in partnership with the founders that remain in operating control of the business. The capital will allow them to continue their exceptionally strong history to capitalize on the strong trends in the managed primary care market. Premier marks Pine Tree Equity’s 5th investment in managed care, 15th investment in the healthcare services industry and 106th investment since Pine Tree Equity’s inception in 2007.
The M&A market for healthcare companies continues to strengthen in 2022 with strategic corporate buyers and private equity investors. Across the continuum of care, these buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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Contact Paragon Ventures for more information.
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