Orthopedic Care Partners (OCP) has a new top executive – and some added financial firepower for him to work with.
The Gainesville, Florida-based orthopedic practice management platform announced Thursday that Dr. Tim Corvino is taking the helm as CEO. Corvino is the former CEO of Spire Orthopedic Partners.
The same day, OCP announced a growth recapitalization transaction, inclusive of a $185 million hybrid capital raise provided by Brookfield Asset Management through its Brookfield Special Investments (BSI) program and a $358 million senior credit facility refinancing, led by TPG Twin Brook Capital Partners.
“Today’s senior debt refinancing and partnership with BSI positions OCP for accelerated future growth,” Corvino said in the announcement. “We look forward as an organization to growing OCP’s presence in current and new markets, continuing to invest in enhancing our patient care and experience at every OCP location and executing on our robust pipeline of high impact growth opportunities.”
Prior to his time as CEO of Spire, Corvino previously served as COO of Covenant Physician Partners and, before that, as COO of U.S. Acute Care Solutions.
OCP operates in five states, supporting 136 physicians across a platform of 42 clinical locations and six ambulatory surgery centers (ASCs).
Private equity investment firm Varsity Healthcare Partners formed Orthopedic Care Partners in late 2017. The move was done via the recapitalization of The Orthopedic Institute, which, at the time, only operated in Florida.
Varsity Healthcare Partners is a Los Angeles-based lower middle-market health care services PE firm. Its other portfolio companies include Surgica Affiliates Management Group, Emergency Care Partners, Ideal Option and several other health care organizations.
OCP’s new investment and financing positions the company for its next phase of growth, according to Thursday’s announcement.
“OCP’s successful debt refinancing extends and reprices the company’s existing credit facility to a lower rate, while providing OCP with an expanded revolving credit facility and delayed draw term loan to support OCP’s future growth,” noted the announcement.
Investors and lenders have increasingly targeted the ASC space.
In large part, that interest is due to one of health care’s biggest and stickiest trends: moving care into lower-cost outpatient settings.
“It’s that trend of pulling care out of the hospital into outpatient settings,” a PitchBook analyst previously told ASC News. “That’s been the case for a while. You look at a category like cardiovascular; the growth of private activity in that category for the past couple years was very much driven by certain procedures being approved for reimbursement in an outpatient setting.”
More investor interest is expected in 2025 as the U.S. macroeconomic outlook improvements and interest rates continue to drop.
