In a new twist in the health sector, TPG and UnitedHealth Group have been identified as front runners in the acquisition of Surgery Partners, a leading surgical and outpatient service provider.

The discussions on the acquisition occur at a time when there is increasing attention to the concentration of healthcare services and the further continuation of the trend when large players try to increase their presence in the healthcare market. 

Company Profile

Surgery Partners owns and manages ambulatory surgical centres and physician practices across the United States. The company was established in 2004 and provides various surgical solutions such as orthopaedic surgery, ophthalmologic surgery, and pain management.

Having a diverse network of facilities and a large patient pool, Surgery Partners has established itself as a major provider of outpatient surgery services.

According to the latest information, the value of the company is estimated to be at about $3. 5 billion. The company has been seeking ways to improve its growth and efficiency and has drawn the attention of several large players in the industry. 

TPG’s Interest In Surgery Partners

TPG is one of the leading global private equity firms that have made large investments in different industries; it is among the major contenders for acquiring Surgery Partners.

TPG has invested in the healthcare sector before; some of its past investments include Envision Healthcare and LifePoint Health. The firm’s interest in Surgery Partners fits into its healthcare niche and the need to leverage on the increasing market for outpatient surgery. 

United Health Group’s Acquisition Strategy

Another large health insurer in the United States, the UnitedHealth Group, is also interested in the acquisition of Surgery Partners. This shows UnitedHealth’s general approach to acquiring and growing its healthcare services business to strengthen its capacity to handle surgical care and outpatient services.

The acquisition would also allow UnitedHealth to optimise cost control and patient care through integrated care models. 

Current Status And Next Steps

To this date, both TPG and UnitedHealth Group are involved in diligence exercises and discussions with Surgery Partners. The last call on the acquisition will be taken based on factors like valuation, fitment and regulatory clearances.

The result is expected to be released in the next few months and may bring changes to the market and the industry.