The Oncology Institute jump-starts next wave of value-based care, PSG's Lumaverse seeks buyer

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The Wire

June 30, 2021

Why The Oncology Institute's merger with Deerfield's SPAC is the first of its kind, PSG-backed Lumaverse is the first of its kind

Morning, everybody!

The Oncology Institute is merging with a SPAC sponsored by Deerfield and veteran healthcare executive Richard Barasch – underscoring the arrival of a new kind of value-based care company looking to revolutionize the way cancer care is delivered and paid for.

The last few years have produced a number of illustrious transactions involving value-based primary care. Activity has only accelerated through covid, with such assets gaining even more traction amid the proliferation of SPACs and a receptive IPO market. But TOI, backed by Havencrest Capital Management, ROCA Partners and M33 Growth, is arguably the first of its kind. The SPAC transaction – assigning the combined company an enterprise value of approximately $842 million – could spark a wave of new investment around value-based specialty healthcare groups, PE Hub sources predict.

“To me, there’s going to be three waves of value-based care,” Brad Hively, who joined TOI as CEO in late 2019 after spending years in private equity (most recently RLH Equity), told PE Hub. “Primary care has led it; that’s the first wave. The second wave we’ve kicked off with specialty value-based care. The facilities will be the third to come onboard.”

Read more on the deal’s importance on PE Hub, with more commentary from Hively, as well as DFP Healthcare Acquisitions Corp.'s Richard Barasch, ROCA’s Ravi Sarin and Havencrest’s Christopher Hersey.

Read the full wire commentary on PE Hub...

That's it! Have a beautiful rest of the week and as always, hit me up with updates on deals, your comments, feedback or whatever at springle@buyoutsinsider.com.

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Also of note (may require subscriptions)

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