13 Jan Novum Orthopedic Partners Forms Leading Private Equity-backed Orthopedic Platform in Texas
The investment enables Texas-area orthopedic and spine practices to maintain autonomy while achieving the benefits of scale and serves as a cornerstone for Novum’s new orthopedic practice management platform
DALLAS & FORT WORTH, Texas–(BUSINESS WIRE)–Novum Orthopedic Partners, a national leader in orthopedics and spine practice management, launched a new orthopedic practice management platform in Texas, through the completion of strategic investments in Arlington Orthopedic Associates (AOA), Abilene Sports Medicine & Orthopedics (ASMO), and Waxahachie Orthopedic and Sports Medicine on December 29, 2021. In conjunction with the transactions, Novum also invested in two leading surgical facilities, including the Abilene Center of Orthopedics and Multispecialty and Baylor Scott & White Orthopedic and Spine Hospital at Arlington–a joint venture between Baylor Scott & White Health, United Surgical Partners International and AOA, in which Novum has established a minority ownership position.
The Novum practices provide a full suite of musculoskeletal services, including orthopedic consultation, surgeries, pain management, full diagnostic imaging, physical therapy, and other ancillary services to patients in the Texas region. The Novum practices are led by 34 orthopedic and spine physician partners and represent over 300 employees across 12 clinics and five physical therapy sites. Novum’s innovative business model delivers proven strategies implemented in other healthcare specialties to the field of orthopedics. Novum’s focus is delivering leading finance, operations, technology and compliance infrastructure and personnel in support of their orthopedic practice partners.
“Our physician-led model has a successful track record of driving practice strategies that result in both near-term and long-term value to our physician partners and best-in-class clinical outcomes to their patients,” said Eric Slimmer, Novum’s Chief Development Officer. “We are leveraging a proven playbook and optimizing it for the orthopedics specialty.”
“Novum’s physician-centric approach to practice management is what attracted us,” said Dr. James Burnett, AOA’s President. “Post-closing, we will remain in control of the daily delivery of care to our patients while benefiting from the operational expertise of Novum. In Novum, we found a partner that shares both our clinical and operational vision and that alignment is reflected in AOA’s material go-forward ownership in the company. Novum’s ongoing investment will keep us on the leading edge when it comes to delivery of care and patient experience.”
Novum’s long-term strategy is to partner with like-minded, entrepreneurial orthopedic practices and surgery centers that want to clinically innovate and grow their businesses using Novum’s physician-led, technology-enabled approach.
Dr. Eric Wieser, a leading AOA spine surgeon, added, “I was most impressed with Novum’s commitment to clinical excellence. We are now part of a larger network of practices supported by Novum, A&M Capital and their unique access to resources through A&M Consulting, which allows us to share data, insights and best practices to further strengthen our clinical programs and patient experience.”
Novum is backed by A&M Capital Partners (AMCP), a middle-market private equity firm with total assets under management of more than $2.7 billion and a strong track record in healthcare investing and Alvarez & Marsal Capital, a multi-strategy private equity investment firm with over $3.7 billion in assets under management. Novum was advised on the transactions by McDermott Will & Emery.
“The formation of Novum and the initial practice and surgery center investments are the cornerstone of the company’s orthopedic practice management platform,” said Tom Clayton, Partner at AMCP. “Each of the practices has built leading cultures including a strong commitment to clinical quality, which provides a strong foundation from which to pursue future growth.”
About Novum Orthopedic Partners
Novum Orthopedic Partners is an innovator in the field of orthopedic practice management. The Company’s model allows for practices of all sizes to maintain local autonomy and independence, while achieving the benefits of scale in a national team setting. Novum’s strategy, structure and time-tested model are designed to meet future demands and deliver sustained growth. For more information, please visit www.novumortho.com.
About A&M Capital Partners
A&M Capital Partners (“AMCP”) is Alvarez & Marsal Capital’s flagship investment strategy focused on middle-market control transactions in North America with total assets under management of over $2.7 billion. AMCP partners with founders, corporations and management teams to provide the capital and strategic assistance that it believes is required to take businesses to the next level of success. AMCP invests in businesses across a wide range of sectors, including Industrial Products, Consumer Products and Services, Healthcare, Business Services and Government Services.
About Alvarez & Marsal Capital
Alvarez & Marsal Capital is a multi-strategy private equity investment firm with over $3.7 billion in total assets under management across four funds and three investment strategies. The privately-owned firm is led by a highly experienced investment team, which is augmented by its strategic association with Alvarez & Marsal (“A&M”), one of the largest operationally focused advisory firms in the world. AMC’s business model combines a focus on middle-market private equity investing with the deep operational expertise, industry knowledge and global corporate relationships of A&M, making it a uniquely attractive partner to management teams, corporates and business owners.
About Alvarez & Marsal
A&M is a privately-owned independent global professional services firm that leverages an industry leading group of experienced operating executives who help businesses improve performance, solve problems and unlock value for stakeholders. A&M has over 5,700 operating professionals and employees in 67 offices across North America, Europe, the Middle East, Asia and South America. A&M has expertise across all major industry sectors and extensive functional capabilities in nearly all primary areas of a business enterprise including, among others, operations, revenue enhancement, sales and marketing, manufacturing, IT, finance, working capital management, supply chain and logistics, real estate, human capital management, merger integration and carve-out support.
Chief Development Officer
SOURCE: Business Wire, January 12 2022