Insights from Colliers at BOMA AI, outpatient care and the future of MOBs
At the BOMA Conference in mid-May in Denver, Colorado the LevinPro HC team had the pleasure of speaking with Marianne Skorupski, Director of National Office Research | U.S. and Shawn Janus, National Director of Healthcare | U.S., at Colliers
During our conversation, we spoke about the healthcare real estate market, their expectations for the future and current trends impacting the space.
One major theme of our conversation was how AI will impact the outpatient care market for providers, patients, and real estate investors. Skorupski spoke about how the advancement and integration of AI and other technologies (such as payment digitization and robotics) are
Continued on page 10
potential, particularly AI and digital tools, to improve efficiency and patient care. Investors prioritized quality assets with strong financials and leadership, especially amid cautious lending trends. Additionally, specialty subsectors like autism services, pharmacy services and women’s health generated excitement from attendees.
The LevinPro HC team sat down with several attendees at the conference to hear their thoughts on the current healthcare M&A market, including Scott R. Witter, Managing Partner, Breakwater Advisers; Craig Castelli, Founder and CEO of Caber Hill Advisors; Matthew Huber Managing Group Director, Healthcare Banking & Finance at Flagstar Bank; Robert Chamberlain, Senior Vice President at AlixPartners; Joice Pharris, Director at CohnReznick; and Jeff Freedman, Private Equity Engagement Director at ModMed.
In this Q&A, several industry leaders reveal the latest healthcare M&A trends, and share key insight and
strategies to navigate the market successfully.
Q&A: Industry Leaders on the 2025 Healthcare M&A Market
Q: Which subsectors are generating the most M&A interest?
Scott Witter, Breakwater Advisers: “Autism services are seeing a revival at the platform level. There have been successful exits in the last 6-8 months, with more in the pipeline, which could reinvigorate the sector… We’re also seeing a resurgence in ophthalmology, eye care and retina. Veterinary also continues to perform steadily now that valuations have stabilized.”
Joice Pharris, CohnReznick: “A surprising area of buzz to me was pharmacy services—everything from pharmaceutical consulting for launching new drugs to CROs. The big transaction earlier this year, with Sycamore Partners purchasing Walgreens Boots Alliance, shows pharmacy services as a bigger driver than retail, and I’m hearing it’s a future area of growth and investment, despite being somewhat dormant.”
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Matthew Huber, Flagstar Bank: “Women’s health is being whispered about, suggesting potential opportunities. I’ve heard it mentioned three times at this conference alone.”
Q: What’s an under-discussed trend in healthcare M&A for 2025?
Craig Castelli, Caber Hill Advisors: “We’re seeing a spike in pain management opportunities, which is polarizing due to reimbursement changes and stigma around opioids. Even beyond opioids, questions about medical necessity for certain procedures persist, but there’s a noticeable increase in activity this year compared to prior years.”
Joice Pharris, CohnReznick: “A topic I think is underdiscussed is that digital transformation is a huge need
Continued on LevinPro HC
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Ben Swett, Managing Editor, The SeniorCare Investor (moderator)
Dave Boitano, EVP & CIO, LTC Properties
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centered approach and a coordinated service model.
Agenda Health anticipates continued momentum in IDD M&A, driven by rising demand and funding trends.
“We see continued increased velocity of IDD transactions, particularly those that deliver in-home care and other related services to its participants,” said Decko.
Surging IDD deal activity signals a market prioritizing scale and specialized care. As transactions accelerate,
Patrick Gilbreath, Sr Relationship Manager & VP KeyBank
providers face pressure to consolidate, innovate, and adapt to meet growing demand for community-based services. For organizations navigating this landscape, Active Day’s approach offers a key lesson: growth rooted in alignment and respect is sustainable and critical to improving service delivery for those who
Top Stories of May 2025
Novant Health Acquires Spine & Scoliosis Specialists
Novant Health , based in Winston-Salem, North Carolina, announced that it entered into an agreement to acquire Spine & Scoliosis Specialists
Spine & Scoliosis Specialists provides spine care from two locations in the Greensboro, North Carolina MSA. According to its website, there are three physicians on staff who are supported by a team of four.
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Novant Health is a not-for-profit integrated system of more than 850 locations, including 19 hospitals, more than 700 physician clinics and urgent care centers, outpatient facilities and imaging and pharmacy services. In 2024, it reported revenue of $10.2 billion.
This transaction represents Novant Health's fifth acquisition of the year, expanding its presence by 25 physicians. The financial terms were not disclosed.
Blackstone Emerges as Frontrunner to Acquire AGS Health in Potential $1 Billion Deal
Blackstone Inc. is poised to acquire AGS Health, a leading revenue cycle management provider, from private equity firm EQT AB, according to sources familiar with the matter. The New York-based investment giant has outpaced other bidders, with a deal potentially valuing AGS Health at $1 billion or more expected to finalize in the coming days.
AGS Health specializes in billing, coding, automation and analytics services for healthcare providers. The company serves more than 150 U.S. hospitals and health systems, employing more than 12,000 staff across its operations in the United States, India and the Philippines.
Founded in Chennai, India, in 2011, AGS Health relocated its headquarters to Washington, D.C., after being acquired by Baring Private Equity Asia in 2019. The company expanded its global footprint with a new operation in the Philippines in 2023. EQT, based in Stockholm, Sweden, inherited AGS Health through its 2022 acquisition of Baring Private Equity Asia. Bloomberg News reported in September 2024 that EQT was exploring strategic options for AGS Health, including a potential sale, prompting interest from multiple suitors.
Deliberations are ongoing, and there is no certainty a transaction will be completed, the sources cautioned, requesting anonymity due to the private nature of the discussions. Representatives for both Blackstone and EQT declined to comment.
The potential acquisition follows Blackstone’s recent agreement to buy Chartis from Audax Private Equity, signaling its continued push into healthcare-related investments. Moneycontrol earlier reported Blackstone as the lead contender, citing unidentified sources.
Guardian Pharmacy Services Acquires Senior Care Pharmacy
On May 15, Guardian Pharmacy Services announced that it purchased Senior Care Pharmacy for an undisclosed price.
Senior Care Pharmacy is a long-term care (LTC) specialty pharmacy based in Wichita, Kansas. It serves a range of communities, including LTC facilities, assisted living, group homes, home health and mental health.
Headquartered in Atlanta, Guardian Pharmacy Services is one of the nation's largest LTC pharmacy companies. Guardian's pharmacies provide client services and resident care to LTC communities, including assisted living and skilled nursing, group home, behavioral health and to organizations that serve individuals with intellectual and developmental disabilities. It was founded in 2004.
With the addition of the Wichita location, Guardian now operates two pharmacies in Kansas, Kansas City and Wichita, enhancing its ability to support LTC communities across the state. Senior Care Pharmacy will continue operating under its existing name, with its local leadership team and entire staff. The financial terms were not disclosed.
“This acquisition marks another important milestone in our growth strategy and reflects the success Michael Counts and his team have achieved in the Midwest,” said Fred Burke, president and CEO of Guardian Pharmacy Services. “By combining their expertise and resources with the strength of the local Wichita team, we’re ensuring more residents in LTC communities across Kansas receive the high-quality, personalized care that is the Guardian difference.”
Porch Light Health Acquires Comprehensive Behavioral Health Center
Porch Light Health , based in Denver, Colorado, announced its first acquisition of the year with the purchase of Comprehensive Behavioral Health Center.
Comprehensive Behavioral Health Center is a provider of substance use disorder treatments. It is a respected opioid treatment program (OTP). The practice operates out of two locations in Colorado: Denver and the Denver suburb of Lakewood.
Porch Light Health (formally Front Range Clinic) provides low-barrier, high-access, quality medical addiction treatment to those affected by substance use disorders and related medical conditions. It is one of the largest addiction medicine practices in Colorado, offering outpatient medications for addiction treatment (MAT) at more than 60 treatment locations.
By adding OTP services, Porch Light Health will now offer the full spectrum of MAT options, including buprenorphine, methadone and naltrexon. The financial terms were not disclosed.
Merit Medical Acquires Florida-Based Biolife Delaware
Merit Medical announced on May 20 that it acquired Biolife Delaware in a merger transaction through which Biolife has become a wholly-owned subsidiary of Merit. The aggregate transaction consideration, paid in cash and assumption of Biolife liabilities, was approximately $120 million.
Headquartered in Sarasota, Florida, Biolife Delaware manufactures unique patented hemostatic devices under the brand names StatSeal and WoundSeal.
Merit Medical develops, manufactures and markets medical devices for interventional and diagnostic procedures worldwide. According to its FY 2024 earnings report, the company announced $1.35 billion
in revenues during the full year of 2024.
This strategic acquisition positions Merit to provide clinicians with more products designed to standardize, simplify and minimize post-procedure care and maintenance.
NexPhase Capital Acquires Behavior Frontiers
NexPhase Capital announced on May 5 that it entered into an agreement with Behavior Frontiers. Under the terms of the agreement, Behavior Frontiers will become a subsidiary of NexPhase Capital.
Founded in 2004, Behavior Frontiers is a provider of applied behavior analysis treatment services for individuals with autism and other special needs. It is based in California and operates 26 centers across 12 states. Behavior Frontiers was established to bring consistent care backed by research and data-driven practices to individuals with autism across all age groups. It has a particular emphasis on early intervention care for children between the ages of 3 to 6 years old.
NexPhase Capital, formed by the former principals of Moelis Capital Partners (the private equity division of Moelis Asset Management), targets equity investments of $25 million to $75 million in leading middle-market, growth-oriented companies. It was founded in 2007 and has announced more than 100 investments.
Following the close of the transaction, Behavior Frontiers will continue to be run by its current management team. The financial terms were not disclosed.
Flourish Research Continues Expansion with CARE Deal
Flourish Research has announced the acquisition of the Center for Advanced Research & Education (CARE) based in Gainesville, Georgia. CARE is a multitherapeutic research facility dedicated to advancing innovation in healthcare through conducting phase I-IV clinical trials. Founded in 1998, CARE has conducted more than 150 clinical trials across multiple therapeutic areas.
Based in New York City, Flourish Research is a fully integrated clinical trial organization in North America. The company has sites throughout Alabama, California, Florida, Illinois, North Carolina, Pennsylvania and Texas. Flourish has conducted more than 3,700 trials across more than 15 therapeutic areas and more than 60 indications. Flourish Research was formed in 2021 by private equity firm NMS Capital. San Franciscobased private equity firm Genstar Capital announced a strategic majority investment in Flourish Research in September 2024, and NMS Capital exited its investment in November 2024.
This acquisition expands Flourish Research’s footprint in the southeastern United States. Quadriga Partners acted as financial advisor to CARE. Ropes & Gray acted as legal counsel to Flourish. Financial terms of the deal were not disclosed.
This marks Flourish Research’s second deal of 2025. In February, the company acquired Diablo Clinical Research in California, for an undisclosed price. The company completed one acquisition in 2024, three each in 2023 and 2022 and one in 2021.
Big Sky Medical Acquires Rockwall, Texas Medical Outpatient Building
Big Sky Medical, based in Dallas, Texas, announced on May 6 that it purchased a medical outpatient building (MOB) in Rockwall, Texas.
The MOB, called Lake Pointe Medical Plaza, comprises 46,359 square feet and is located on the campus of Baylor Scott & White Medical Center – Lake Pointe. It comprises two buildings and houses a diverse mix of medical tenants, including Baylor Scott & White affiliates.
Big Sky Medical is a national real estate investment management firm that invests in healthcare-related real estate, with a concentration in the medical outpatient and life science sectors. The firm, which is headquartered in Dallas, has more than $2 billion in
healthcare real estate investment experience and was purchased by GFH Financial in early 2023.
This marks Big Sky Medical's first acquisition of 2025. The financial terms of the deal were not disclosed. In 2024, Big Sky Medical completed five transactions, totaling more than 486,180 square feet. In 2023, it also completed five deals, totaling more than 1,218,000 square feet.
ENT Partners Buys RCM Firm Currence Physician Solutions
ENT Partners, a portfolio company of Candescent Partners , announced that it has acquired Seattle, Washington-based Currence Physician Solutions
Currence Physician Solutions is focused on revenue cycle management (RCM) and financial analytics. The company offers a comprehensive suite of services that encompass all aspects of the medical billing process, including denial management, coding, patient billing, payer credentialing, collections and RCM.
ENT Partners is a leading network of ear, nose and throat and sleep providers. ENT Partners has achieved strong traction in the U.S. market and is focused on building on this momentum by rapidly scaling its operations.
ENT Partners expects the transaction to expand its service offerings to physician partners, streamline administrative processes and prioritize outstanding patient outcomes. The integration process will begin immediately after the announcement, with a focus on ensuring a smooth transition for both patients and staff. Financial terms of the deal were not disclosed.
CVS Subsidiary Sells Its Infusion Care Assets to KabaFusion
On May 19, Coram Infusion Services, the infusion therapy branch of CVS, reported that it was selling infusion services assets to KabaFusion. The transaction includes six locations that serve as pharmacies and ambulatory infusion suites.
KabaFusion, a portfolio company of Novo Holdings, provides acute and home infusion services in more than 40 states, specializing in intravenous immunoglobulin and other home infusion therapies. The company serves patients in 45 states through its nationwide network of home infusion pharmacies, alternative infusion sites and home health agencies.
The transaction will expand KabaFusion’s ability to serve a growing number of patients nationwide and strengthen its commitment to deliver high-quality patient care across a broad range of therapies. The financial terms of the acquisition were not disclosed.
Montecito Medical Acquires Rochester, New York Medical Outpatient Building
On May 20, Montecito Medical Real Estate announced that it acquired a Rochester, New York medical outpatient building (MOB) for an undisclosed price.
The MOB is occupied by Gastroenterology Group of Rochester. According to property records, the building comprises 10,395 square feet.
Montecito Medical Real Estate specializes in healthcarerelated real estate acquisitions and funding. Since 2006, it has completed transactions involving more than $6.5 billion in medical and veterinary real estate transactions.
This marks Montecito Medical's 15th transaction of the year. Since the beginning of the year, the company has purchased MOBs in Georgia, Florida, Indiana, South Carolina, Minnesota, Arizona, Ohio and California for a total of more than 813,745 square feet.
Datavant Acquires Aetion to Expand RWE Platform
Datavant , a portfolio company of New Mountain Capital, announced that it will acquire New York Citybased Aetion. The two companies will leverage their capabilities to create an end-to-end offering on data discovery, linkage, privacy, curation and advanced analysis, allowing their ecosystem and life sciences
partners to create analytics-based insights.
Founded in 2013, Aetion is focused on real-world evidence (RWE) in healthcare. Aetion provides RWE offerings to biopharmaceutical companies, medical device manufacturers, payers and regulators.
Datavant is a health information technology company based in Phoenix, Arizona. The company develops and maintains a digital ecosystem for the exchange of healthcare data. Davavant's platform enables healthcare records to move between organizations, including more than 70,000 hospitals and clinics.
According to the two companies, Aetion will increase the Datavant Connect platform's data discovery features, strengthen privacy assessments and give customers datasets and analytics. In addition, the Aetion Evidence Platform will be available in Amazon Web Services' Marketplace. Financial terms of the deal were not disclosed.
Summit Clinical Research Acquires Houston Research Institute
LongueVue Capital announced that its portfolio company, Summit Clinical Research, in partnership with its other portfolio company, Pinnacle Clinical Research, has completed a strategic investment in Houston Research Institute.
Houston Research Institute is a Houston, Texas-based clinical research site focused on Metabolic DysfunctionAssociated Steatohepatitis, Metabolic DysfunctionAssociated Steatotic Liver Disease, cirrhosis, alcoholic liver disease and obesity.
Founded in 2018 and based in San Antonio, Texas, Summit Clinical Research is an integrated research organization specializing in complex indications. Summit specializes in complex clinical trials with a network of more than 120 sites.
Financial terms of the deal were not disclosed.
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becoming an integral part of the emergency room and doctors’ practice experience.
Both Skorupski and Janus said that many doctors are embracing these changes because AI is efficient and helps with the physician-patient imbalance, which has arisen due to physician burnout. Janus also addressed the fact that hospital-owned practices are integrating AI as soon as possible because it could potentially assist with better care delivery. Additionally, AI is a factor driving both patients and physicians to outpatient care facilities for certain procedures, along with lower cost and convenience.
However, Skorupski also addressed some potential concerns that lenders and investors may have about integrating these advancements into medical office space.
“There are challenges, especially when it comes to a preexisting facility,” she said. “Can the facility be adapted to host the new technologies and power structures? Is there support for the cable lines for internet and Wi-Fi? Is there even space in the building? These are starting to become a bigger part of the conversation.”
Throughout the BOMA conference and during our conversation, the idea of converting traditional office spaces into healthcare real estate spaces came up frequently. As new demand for traditional office space remains limited post-COVID, property owners are appealing to medical users. In many cases, this would be the first time the space is utilized as a healthcare setting.
Janus also noted that many hospitals will start with practices such as primary care and internal medicine, before adding specialty practices like orthopedics, affording tenants the opportunity to figure out the logistics of the space.
But with increasing costs of construction, wouldn’t some owners want to convert old facilities instead of building a new one? Skorupski said that the cost of conversion is a factor when deciding to convert or develop, but not
the only one.
“The main factor is convenience. It’s part of an effort to get close to the patient,” said Skorupski. “Since COVID-19, there’s been lower demand for traditional office space; the use of brick-and-mortar space has declined, and owners are reconsidering what the space can be used for.”
However, Skorupski did say that there has been less conversation than anticipated. This is partially because a large portion of office space doesn’t meet the requirements to become medical real estate. Janus also noted that conversion offers a faster timeline for physicians.
Janus, however, did touch upon some additional challenges facing owners when thinking about converting. “Parking is a huge issue,” he said. “Even if the building could be converted, that doesn’t mean there’s enough parking for the facility to support medical real estate space which typically requires a greater parking ratio.”
This is particularly true in urban areas where the demand for parking is elevated and availability is already limited. He noted that throughout the end of 2024 and in 2025, there has been a slower period of development as cost, interest rates, increasing pay, and labor constraints play out.
Additionally, Janus spoke about the burnout that nurses and physicians are feeling. More physicians are retiring, and fewer people are applying to medical school.
“Many hospitals are having trouble staffing their operations,” he said. “So, why build a building if you can’t staff it?”
The obstacles to new development and converting office space have turned the attention to converting retail space into medical office space. Retail spaces typically have characteristics more favorable for conversion to medical space (ceiling height, open floor plans, greater parking ratios).
Continued on LevinPro HC
Top Deals May 2025 Home Health & Hospice
Closing the Gap HC Group Private Extendicare Inc.
EXE 5/1/2025 $75,500,000 Mississauga, Ontario Markham, Canada
In Brief: Founded in 1990, Closing the Gap Healthcare Group is a provider of integrated home and community-based healthcare services in Ontario and Nova Scotia, delivering adult and pediatric care services in patients’ homes and in community clinics. In addition to personal support and nursing services, Closing the Gap has deep expertise in allied health services, including physiotherapy, occupational therapy, speech language pathology, nutrition and social work.
Lehan Drugs, Inc. Private Viemed Healthcare, Inc.
VMD 5/6/2025 $26,000,000 Illinois Lafayette, LA
In Brief: Lehan Drugs, Inc. is a provider of durable medical equipment with six locations: five in Illinois and one in Wisconsin. Its products include sleep apnea machines, mobility aides and breast pumps. According to the original deal press release from May 6, 2025, Lehan generated net revenues of approximately $25.7 million and adjusted EBITDA of approximately $7.4 million in 2024.
Top Deals May 2025 Laboratories, MRI and Dialysis
Vernon Hills, IL Toronto, Canada; Montréal, Canada
In Brief: Headquartered in Vernon Hills, Illinois, Antylia is a diversified life sciences company focused on the biopharmaceutical, clinical diagnostic and environmental testing industries, among others. Antylia supports the accuracy and repeatability of processes in research and clinical labs by manufacturing and selling mission-critical products to thousands of long-term customers across these industries.
Top Deals May 2025 Medical Outpatient Building
Thousand Oaks, CA Nashville, TN
In Brief: The property is a medical outpatient building in Thousand Oaks, California and comprises 85,731 square feet. It is currently 95% leased, while 54% is leased by Thousand Oaks Surgical Hospital, which houses 21 beds. Other services offered at the medical outpatient building include imaging, dental, OB-GYN, plastic surgery and cardiology. The price is $817 per square foot.
Top Deals May 2025
Biotechnology & Pharmaceuticals
BP Asset IX, Inc. Private GSK Plc NYSE: GSK 5/14/2025 $1,200,000,000 United States Brentford, United Kingdom
In Brief: BP Asset IX, Inc. is a subsidiary of Boston Pharmaceuticals. Its lead asset is efimosfermin alfa. Efimosfermin is a phase III-ready, potential best-in-class, investigational specialty medicine to treat and prevent progression of steatotic liver disease.
Vigil Neuroscience, Inc. NASDAQ: Sanofi NASDAQ: SNY 5/22/2025 $470,000,000 Watertown, MA VIGL Paris, France
In Brief: Vigil Neuroscience, Inc. is a publicly traded clinical-stage biotechnology company focused on developing novel therapies for neurodegenerative diseases. Vigil's VG-3927 is an oral small-molecule TREM2 agonist. Activating TREM2 is expected to enhance the neuroprotective function of microglia in Alzheimer’s disease. According to its most recent annual report, Vigil Neuroscience reported that its EBITDA was a loss of $89 million. The biotechnology company reported no revenue generated, consistent with its focus on research and development, with no commercial products generating sales.
Deal Volume, May 2025 vs. April 2025 and May 2024
Source: LevinPro HC, June 2025
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