Kaufman Hall Serves as Advisor on Three Major Physician Group Transactions

SKOKIE, Ill. – April 19, 2018 – Kaufman Hall, a leading provider of strategic and financial consulting services, and enterprise performance management (EPM) and decision support software, announced that it acted as the financial and strategic advisor on three recent physician group-related transactions across the country.

Reliant Medical Group and Optum

Kaufman Hall assisted Reliant Medical Group with its acquisition by UnitedHealth Group’s Optum division. Reliant is Central Massachusetts’ largest multispecialty physician group with more than 500 providers across 26 clinical locations. Kaufman Hall initially assisted Reliant in determining the organization’s financial capacity to develop a new care model and implement a transformational facilities plan. Those financial analyses and planning efforts ultimately informed Reliant’s decision to seek a partner to further achieve its mission, vision, and strategic goals. Kaufman Hall supported Reliant in identifying and engaging with partnership candidates, and facilitating all aspects of the transaction process.

MultiCare Health System and Physicians of Southwest Washington

Kaufman Hall also worked with MultiCare Health System, one of the largest locally governed and community-based systems in Washington State, on its partnership with Physicians of Southwest Washington (PSW), an independent practice association (IPA) with more than 500 primary and specialty physicians. Kaufman Hall served as financial advisor to MultiCare in its minority investment into PSW to support the organization’s independent physician practice model and improve healthcare delivery in the Puget Sound region.

Austin Diagnostic Clinic and St. David’s HealthCare

Austin Diagnostic Clinic, one of the oldest and largest multispecialty clinics in Austin, Texas, with over 150 physicians across more than 20 specialties, selected Kaufman Hall as exclusive financial advisor in its affiliation with St. David's HealthCare. St. David’s is an Austin system that is majority owned by Hospital Corporation of America (HCA). Kaufman Hall partnered with Austin Diagnostic Clinic on all aspects of its transaction process, from identification of potential partners to soliciting proposals and negotiation of definitive agreements.

“We are privileged to be working with these organizations as they contemplate and execute on their strategic initiatives,” said Kristofer Blohm, senior vice president at Kaufman Hall. “While each represented a unique set of circumstances, in all of these situations we helped our clients identify opportunities for growth through alignment with other healthcare provider organizations. We wish each of them well as they work with their new partners to improve healthcare delivery for their respective communities.”

These transactions follow a trend of increased activity as the physician group sector continues to grow and consolidate. According to a recent report from Kaufman Hall, physician group transactions increased 37 percent from 2016 to 2017.

About Kaufman Hall

Kaufman Hall provides management consulting and software to help organizations realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods into their strategic planning and financial management processes, and quantify the financial impact of their plans and strategic decisions to consistently achieve their goals.

Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; cost transformation; treasury and capital markets management; and mergers, acquisitions, partnerships, and joint ventures.

Kaufman Hall software includes the Axiom Healthcare Suite, providing sophisticated, flexible performance management solutions that empower finance professionals to analyze results, model the future, and optimize organizational decision making. Solutions for long-range planning, budgeting and forecasting, performance reporting, capital planning, and cost accounting deliver decision support, reporting, and analytics within an integrated software platform. Kaufman Hall's Peak Software empowers healthcare organizations with clinical benchmarks, data, and analytics to provide a higher quality of care for optimized performance and improved patient outcomes.