Case Study: Confluence Healthcare Partners (CHP) Partners With Timothy Groth MD PC

“We have evaluated over 15 interventional pain companies over the last two years, and Dr. Groth and his team were exactly what we were looking for in a partner within a sector of healthcare that we believe is well-positioned for the future of healthcare delivery.”

John Hudson, Co-Founder of Confluence Healthcare Partners

Axial Members

Member Type	Independent Sponsor	Investment Bank
Axial Member Since	2023	2023
Headquarters	Charlotte, NC	Miami, FL
Axial Closed Deals	1	1
Axial Profile	View Profile	View Profile

The Business

Location: Suffolk and Nassau Counties, New York

Description: Timothy Groth, MD PC, is a multidisciplinary medical practice specializing in pain management and chiropractic care. Established in 2005, the practice provides advanced treatments like epidural steroid injections, nerve blocks, spinal cord stimulation, and radiofrequency ablation. They also offer non-surgical disc decompression, medication management, and personalized chiropractic care for conditions such as back pain, disc herniations, and sports injuries.

Reason for exit: Dr. Groth sought growth capital to expand the practice’s locations and services. Additionally, the practice needed strategic guidance to strengthen its management team and transition operational responsibilities from the founders to the next generation of leaders in partnership with the CEO.

Website  |  LinkedIn

The Bloom Organization, a member of Axial since 2023, has marketed a total of 25 deals on the platform. The Timothy Groth opportunity was marketed on October 31, 2023, both through Axial and via external channels.

• Through Axial: 188 buyers were contacted, 4 reviewed the CIM, and 1 offer was submitted.
• Outside Axial: 75 buyers were contacted, 31 reviewed the CIM, and 6 offers were submitted.

Confluence Healthcare Partners (CHP) pursued the deal via Axial on November 6, 2023, submitted an IOI on November 29, 2023, and executed the LOI on March 12, 2204. There were a number of external factors outside of the control of the seller or CHP, which put the transaction on hold for a few months. Once those items were resolved, both parties worked in earnest to close the transaction on an expedited basis on December 23, 2024.

The transaction resulted in the formation of a new physician administrative service organization (ASO) by CHP and Skyline Investors in partnership with Dr. Timothy Groth MD PC. The ASO will deliver administrative support to leading pain management practices, leveraging CHP’s expertise to expand into new geographies and service lines while driving enhanced patient outcomes.

Key Insights

Graham Miller of The Bloom Organization:

“You could tell immediately when you dug into the operations and financials of the business that they had taken a unique approach to patient care that helped drive organic growth. The management team developed a strong company culture focused on creating a positive patient and provider experience. This commitment to investing in both physicians and administrative staff resulted in more enjoyable patient visits and increased profitability for the practice.”

Kevin Tom of Skyline Investors:

“Groth Pain Management and the interventional pain management industry are on the right side of healthcare trends, with the nation grappling with its aging population and payors challenged with increasing hospital costs.”

Dr. Hayes Woollen, Co-Founder of CHP:

“Dr. Groth’s legacy and vision for taking care of patients with acute and chronic pain is differentiated in the industry. They have a dedicated team of world-class clinicians that focus on specific diagnoses for each of their patients and work with them to develop a comprehensive, multi-modality approach to their pain that produces superior outcomes.”

Dr. Timothy Groth shared his perspective on the process:

“As we went through our process led by The Bloom Organization, we had a number of options for partners, from strategic acquirers to private equity groups. We felt Confluence Healthcare Partners was the best fit as they had the industry knowledge and operating experience to help us continue to grow our practice and, equally important, shared our vision of the priority of quality patient care and experience.”

Axial Deal Data