Innovation Institute LLC in La Palma has acquired Summit Talent Group, a healthcare industry executive compensation and search firm in Columbia, Md.
Innovation Institute develops healthcare products and services under three units: a medical devices and technology lab, an investment fund, and a division that buys firms providing services that include healthcare construction, staffing, and medical office design and equipment.
Summit will be part of the third unit, retain its Maryland offices and work with San Rafael-based FutureSense LLC, which Innovation Institute bought in November and which provides staffing to healthcare companies and physicians groups, among others.
Innovation Institute in a similar move in April bought MultiMedical Systems, a clinical engineering services and medical equipment firm in Fresno whose work is related to an Institute company, Tech Knowledge Associates.
Its portfolio companies provide services “typically outsourced by hospitals and health systems,” said Institute Chief Executive Joe Randolph via email.
He said the company is profitable and has annual revenue of $165 million and earnings before interest, taxes, depreciation, and amortization of $13 million.
“We are projecting an internal rate of return of 18%,” for owners, Ranolph said.
The institute has five owners—Irvine-based St. Joseph Health; Children’s Hospital of Orange County in Orange; Marriottsville, Md.-based Bon Secours Health System; Baton Rouge, La.-based Franciscan Missionaries of Our Lady Health System; and Sioux Falls, S.D.-based Avera Health—each of which have made minimum investments of $10 million.
Institute partners providing services include Deloitte LLP in New York; Dell Services in Round Rock, Texas; and Boston Scientific Corp in Natick, Mass. The companies provide consulting, technology and medical device help, respectively, to the institute’s laboratory division, which is in Newport Beach.
St. Joseph Health is part of Providence Health and Services in Renton, Wash., under the name Providence St. Joseph Health.