Case Study:

HealthCare Partners

“Summit brought much more than capital to our relationship. They know our industry, have access to great resources and helped tremendously during a period of rapid growth and expansion. They were very much a partner in our success.”

Dr. Robert Margolis, Founder and CEO

Torrance, CA

Dr. Robert Margolis

Founded in:
invested in:

Merged with DaVita 2012

Summit Team:
Craig D. Frances, M.D.
Case Study:

HealthCare Partners

A model for coordinated healthcare delivery, HCP has grown to serve approximately 765,000 patients

Grew EBITDA more than 6x during Summit’s investment and expanded outside of California, adding platforms for growth and diversification

Merged with DaVita in one of the largest healthcare services transactions in history to form DaVita HealthCare Partners

Founded and led by Dr. Robert Margolis, HealthCare Partners (HCP) is a leading integrated healthcare delivery system and is a role model for integrated and coordinated care, leading the transformation of the national healthcare delivery system to assure quality, access and affordable care for all. Although HCP was profitable, growing well and had a strong balance sheet, its physician owners sought an experienced healthcare investor to help them plan and execute a growth strategy.

How Summit helped:

  • Provided equity and helped raise institutional debt, assisting with the selection of an investment banker, rating agency process and marketing to investors

  • Worked with management on strategic growth initiatives, including a focus on acquisitions in additional geographic regions

  • Sourced several attractive acquisition opportunities, including two that closed and expanded HCP into three more states: JSA Medical Group, which added Florida and Nevada, and brought substantial value to HCP in subsequent years; and Arizona Integrated Physicians, which added Arizona

  • Assisted in initiating and developing a formal corporate development team to pursue a pipeline of acquisition targets

  • Served as an active advisor to the CEO and management team throughout the investment, including assisting in the evaluation of strategic exit opportunities

In 2012, DaVita and HCP completed a merger to acquire HCP for approximately $4.4 billion plus other incentive consideration, forming DaVita HealthCare Partners. HCP’s senior management team has continued to manage HCP as a subsidiary of the merged business.