Heritage Provider Network Inc (HPN) Finally Moving Forward With Potential $7 Billion+ Sale

Heritage Provider Network Inc (HPN) is finally moving forward with a potential sale that could value the private medical group at more than $7 billion. In 2021, there was an aspiration of a deal valued at more than $9 billion.

This move comes as healthcare providers are under increasing pressure to value-based care and merge or acquit to remain competitive. HPN has 3,700 primary care doctors, more than 10,000 specialists, and about 1,700 facilities in its network, according to its website. The company has more than 800,000 members across Arizona, California, Missouri, and New York. Northridge, California-based HPN generates about $600 million to $700 million in annual earnings before interest, taxes, depreciation, and amortization.

As I had shared before, physician practices are being bought up at an alarming rate. Corporate entities such as private equity firms and health insurers are the primary force behind the acceleration in physician practice buyouts, according to a survey by Avalere.

The payers and health plans are all looking to tackle the Medicare Advantage space, and they need to bring in more senior patients that choose the advantage plan to put them under their care management. There is an accelerated play to increase the number of covered entities for all payers and health plans.

HPN is a target for United Healthcare, Humana, CVS, and other regional and up-and-coming players in the space. This is a space to watch as HPN goes through its due diligence to find a potential buyer.