A North Canton company that provides physician staffing for hospital emergency departments is joining with a health-care investment firm to finance its national expansion plans.
Emergency Medicine Physicians recently finalized a deal with New York investment firm Welsh, Carson, Anderson & Stowe to create a new company called U.S. Acute Care Solutions.
The goal of the venture is to contract with hospitals nationwide to provide emergency medicine physicians and inpatient care specialists or “hospitalists,” Dr. Dominic Bagnoli, the Stark County company’s chief executive, said in an interview this week.
The deal will enable the Stark County-based company to expand by hiring more doctors and acquiring or merging with other physician groups, Bagnoli said.
“Our goal really is to become the national leader within three to five years,” he said.
Financial details aren’t being disclosed, but the doctors will remain the majority owner of the new company, Bagnoli said. Emergency Medicine Physicians’ leadership and headquarters also will stay.
The deal is expected to close by July.
Hospitals increasingly are consolidating and seeking to work with physician groups that can help improve the quality of patient care and lower costs, Bagnoli said. Hospitals also are seeking staffing companies that can provide ER coverage as well as hospitalists — a service the local physicians’ group hasn’t offered since 2006.
The group decided last year to seek a partner to expand, he said.
Emergency Medicine Physicians now provides ER staffing for about 70 hospitals in 16 states.
“We are excited to partner with EMP,” Brian Regan, general partner of Welsh, Carson, Anderson & Stowe, said in an email. “Their providers consistently deliver great care in emergency departments across the country. … USACS will offer a unique value proposition in the market, which is the opportunity to partner with a company led by physicians but with the resources, business support and capital of a large enterprise.”
Cheryl Powell can be reached at 330-996-3902 or firstname.lastname@example.org. Follow Powell on Twitter at twitter.com/CherylPowellABJ.