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Speaking at the recent ACG healthcare conference, Comvest Partners executive partner Otto Campo said valuations for most of these assets are at all-time highs.
Valuations for physician practices remain at lofty levels.
"Valuations, as I'm sure most of you know, for a lot of these assets are at all-time highs," said Otto Campo, executive partner at Comvest Partners and executive chairman of IMC Health Medical Centers, at a panel discussion at ACG New York's healthcare conference at the Metropolitan Club on Thursday, Feb. 22.
"You've got to be selective," Campo said.
Among the other high-profile topics that came up was the recent announcement of the joint healthcare initiative of Amazon.com Inc. (AMZN), Berkshire Hathaway Inc. (BRK.A) and JPMorgan Chase & Co. (JPM).
"I see that probably impacting more at the outset the commercial space," Campo said.
Gryphon Investors LP partner Kevin Blank, who serves as general manager of the private equity firm's healthcare group and chairman of OB Hospitalist Group, said the trio's partnership represents an "incredible array of talent."
Amazon, Berkshire and JPMorgan announced Jan. 30 that they had banded together to improve healthcare for their U.S. employees. The trio said in the statement that they plan to form an independent company "that is free from profit-making incentives and constraints" and will focus initially on technology that will give employees and their families "simplified, high-quality and transparent healthcare at a reasonable cost."
The panelists -- Campo; Blank; Richard Park, CEO of Warburg Pincus LLC-backed urgent care provider City Practice Group of New York LLC, which does business as CityMD; and Sam Weinstein, CEO of Kohlberg & Co. LLC-based outsourced medical services company SpecialtyCare Inc. -- also discussed deal integration.
Once a transaction is sealed, it comes down to integration, Blank said, adding: "What trust have you built through the process? How clear are you on the expectations that you developed? What's your investment in human capital?"
"We try and immediately engage with the staff on day one," Weinstein said.
Jennifer Meyers, a director at healthcare-focused advisory and consulting firm Marwood Group & Co. USA LLC, was the moderator for the panel.
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