Inpatient Management, Inc.

A leading provider of hospitalist program solutions to general acute care hospitals across the United States and has one of the longest-tenured hospitalist practices in the country. IMI maintains a network of over 90 contracted physicians at 15 hospital locations.

Transaction Summary

Brookwood advised IMI on its sale to Eagle Hospital Physicians, a portfolio company of Highlander Partners and Flexpoint Ford.

Engagement Process and Outcomes

Owner and Management Goals – IMI was founded in 1997 by the Company’s senior management team and outside investors as one of the earliest participants in the hospitalist industry. Having established a strong operating platform supported by an excellent market reputation, the shareholders sought a partner that would provide: (i) an attractive return on their investment; and (ii) greater operational and financial resources to drive more rapid growth.

Effective Company Positioning – Brookwood’s previous success in the hospitalist sector generated valuable insights and an effective, targeted marketing process. This process highlighted IMI’s flexible approach to contracting, nationwide customer base, experienced and recognized management team, attractive historical growth and rapidly growing new business pipeline. IMI had also experienced significant recent growth, and Brookwood effectively portrayed its run-rate earnings – which were used as the basis for valuation.

Excellent Result – The transaction generated a valuation that exceeded the shareholders’ expectations and matched IMI with a partner interested in investing in organic growth and driving further industry consolidation. The entire senior management team had the opportunity to remain with IMI to grow the business while leveraging a stronger platform.



Press Release Excerpt

We are pleased to announce that Brookwood Associates has advised Inpatient Management, Inc. (“IMI”) on the sale of the Company to Eagle Hospital Physicians, a portfolio company of Highlander Partners and Flexpoint Ford. IMI is a leading provider of hospitalist program solutions to general acute care hospitals across the United States and has one of the longest-tenured hospitalist practices in the country. Brookwood’s targeted marketing process highlighted IMI’s flexible approach to contracting, nationwide customer base, experienced and recognized management team, attractive historical growth and rapidly growing new business pipeline.

The transaction yielded an attractive outcome for the shareholders and management, including a financial partner interested in investing in organic growth and driving further industry consolidation. This transaction extends Brookwood’s track record in healthcare services and represents the second completed assignment in the hospitalist sector. Certain healthcare segments such as outsourced physician services are experiencing rapid growth, and Brookwood anticipates significant transaction activity among these companies. Specialty physician practices in particular are experiencing substantial consolidation, and Brookwood can add significant value in these transactions.