PhyMed’s primary investor is Excellere Partners, a private equity investment firm based in Denver, Colorado.
Excellere’s investment in PhyMed is a result of a four-year search for an anesthesia platform based on the firm’s disciplined top-down investment strategy driven by several factors
- The nondiscretionary nature of anesthesia services that carries a high degree of medical necessity because sedation is required for most surgical procedures
- A clear and deep value proposition to patients, surgeons, medical facilities and payors
- The highly fragmented nature of the industry
The U.S. anesthesia services industry is estimated at over $23 billion and growing at 4% per year, in line with growth in total surgical procedures and case reimbursement rate trends. The number of U.S. surgical procedures is projected to grow 29% from 2010 to 2020 providing PhyMed with significant growth opportunity.