Irvine-based American Medical Technologies, a provider of wound care programs for skilled nursing facilities, was acquired by New York-based One Equity Partners (OEP) and Silverfern Group last month. Financial terms weren’t disclosed.
“This transaction reflects OEP’s ability to source proprietary investment opportunities where we can leverage our experience in the post-acute healthcare sector,” Brad Coppens, managing director of One Equity Partners, said in a statement. “We look forward to expanding AMT’s role in the healthcare delivery ecosystem to multiple additional care settings.”
One Equity Partners, which was founded in 2001, was spun out of JP Morgan in 2015 and now has $6 billion in assets under management. Coppens previously worked in the M&A department of JP Morgan.
AMT, which has a parent name of Gordian Medical Inc., enables its customers to outsource billing, clinical programming, supply chain management and scheduling of wound care cases. It provides wound care assessment, education and order fulfillment for more than 250,000 patients annually in 6,250 homes across the U.S.
It recorded north of $100 million in revenue last year, according to Chief Executive Sam Muppalla.
“We are the national leader in the space,” Muppalla told the Business Journal.
“We are a passionate group of clinicians focused on patient care, navigating a complex regulatory environment where we often need to advocate for the patient.”
AMT bills the Centers for Medicare & Medicaid Services for its services and supplies.
Muppalla said the acquisition will provide AMT with “the funds to explore growth strategies” and “become a more stable company.”
Tech Savvy
AMT, founded in 1994 by Joe Del Signore, tapped Muppalla in 2016.
He oversaw its reorganization and over a four-year period and produced compound annual growth rates of 34% on EBITDA and 21% on revenue. In that time, the company added some 100 employees.
Muppalla also transitioned AMT to a data-driven organization.
“Wounds have many complexities and types, and we use analytics to make sure we are driving the right patient outcomes,” Muppalla said.
He noted that analytics also help communicate AMT’s value to its partners. For example, AMT uses analytics to determine how much nursing homes save when working with the company.
Growth Prospects
AMT ultimately wants to “heal patients no matter where they are,” Muppalla said.
“We want to expand across what we call the post-acute care continuum and ensure continuity of care.”
In addition to nursing homes, wound care patients often receive treatment through home health agencies, wound care clinics and wound care centers.
AMT is also looking at partnering with a technology provider to offer wound care education and telehealth services through a consumer-facing app that delivers an “intimate experience.”
Telehealth capabilities have become more urgent amid the pandemic, said Muppalla, and AMT is working to “increase touch points” to support its existing partners.
