By GREGORY ZELLER //
New York City’s leading urgent-care provider will acquire Long Island’s No. 1 operator of walk-in health clinics, the two parties announced this week.
Terms of the deal were not disclosed. But when the ink dries, CityMD – which also announced plans to acquire First Med Immediate Medical Care, a standalone urgent-care clinic in Queens – will boast 100 Greater New York locations, including its new eastern operations.
“Thrilled” to reach that 100-facility milestone and “excited” to welcome STAT Health and First Med into the fold, CityMD CEO Richard Park trumpeted multiple advantages inherent to the acquisitions, starting with that eastern migration for his urgent-care empire.
“Our seamless integration will enable us to serve more patients in Eastern Long Island and Queens, and bring us closer to achieving our vision of building healthier, kinder communities,” Park said Tuesday.
The expansion marks the most ambitious move for CityMD since April 2017, when NYC-based private equity firm Warburg Pincus announced a majority investment in the circa-2010 healthcare provider, designed to bolster Warburg Pincus’ urgent-care portfolio and accelerate CityMD’s expansion plans.
With the takeover expected to be completed by the spring, the STAT Health staff plans to remain on the job in its current locations. That includes STAT Health President Paolo Coppola, who co-founded the walk-in clinic enterprise in 2005 with board-certified emergency physician Marc Salzberg.
Coppola – who grew the startup to eight locations before partnering in 2016 with California-based investment firm Spanos Barber Jesse & Co., then added four additional clinics with plans for more – called it “an honor and a privilege” to guide STAT Health from its earliest days to its CityMD affiliation.
“I know I speak for the entire STAT organization when I say we look forward to joining CityMD and continuing to provide our patients with the best possible medical care,” Coppola said in a statement.
When the acquisitions are completed, CityMD will employee more than 400 healthcare providers in its physician-led network, which orbits the burgeoning health system’s unique Aftercare Department – a centralized hub designed to help patients coordinate their follow-up care, with services covering referrals, lab and imagery results, pre-approvals and appointments.
Pending regulatory approvals, both acquisitions are slated to close in the first quarter of 2018. Upon closing, STAT Health and First Med facilities will begin rebranding as CityMD and “will benefit from CityMD’s corporate infrastructure,” according to the NYC-based parent.
The deal also marks a win for growth-investing specialist Warburg Pincus, which according to some reports plunked down $600 million to acquire CityMD last year and has now raised 17 private equity funds that have invested a combined $60 billion in 800-plus companies around the world.
But the biggest bottom-line winner appears to be CityMD, which expands its financials, its footprint and its mission, according to Chief Growth Officer Nedal Shami.
“CityMD’s expanded footprint … allows us to continue making healthcare more inclusive by providing an exceptional experience through high-quality medical care and convenient access,” Shami said, adding the STAT Health acquisition also helps the NYC mothership “manage population health, address the needs of our payors, health system collaborative partners and employers in the market, and serve our core constituents where they work and live.”