CityMD sold a majority stake in its urgent-care chain to private-equity firm Warburg Pincus as it seeks to accelerate its expansion “through new site openings and strategic acquisitions and partnerships,” the companies said Tuesday in a joint statement.
CityMD did not disclose the terms of the deal, but Reuters reported Tuesday that the transaction valued the company at about $600 million, including debt.
Founded in 2010, the chain has opened 68 locations in New York, New Jersey and Washington state, providing a more cost-effective and convenient alternative to emergency rooms. Its walk-in clinics have changed patients’ expectations for doctors’ offices thanks to extended night and weekend hours. The company serves more than 1 million patients annually and has about 300 employees.
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“With our combined business objectives and their deep expertise in the health care sector, this partnership will enable CityMD to continue expanding as we strive to achieve our vision to build healthier communities by serving everyone,” Dr. Richard Park, CityMD’s chief executive, said in a statement.
Park, whose family owned retail businesses growing up, co-founded CityMD from a single clinic at East 86th Street between First and Second avenues, he told Crain’s in a 2015 interview.
“CityMD has established itself as a leading provider in the fast-growing U.S. urgent-care market by creating an exceptional patient experience and providing high-quality treatment at significantly lower costs than traditional visits to the emergency room,” In Seon Hwang, managing director at Warburg Pincus, said in a statement.
The urgent-care market is poised to expand as patients grow accustomed to convenient care for minor injuries and illnesses.
As CityMD has grown, the chain has needed to convince doctors and insurers that it was providing quality care. Local health systems have bought in. CityMD has partnerships with Mount Sinai, Catholic Health Services of Long Island and Hackensack University Medical Center.
It generates leads from doctors when their offices are closed and links with their network of specialists to refer patients needing more complex care. There are more than 50 locations in New York City, Long Island and Westchester alone.
Park described convincing patients that CityMD provides quality care as a key to its success during a Crain’s forum this past June.
“I’m not talking about just any level of trust,” he said. “You need to create Oprah-like trust.”
CityMD sold a majority stake in its urgent-care chain to private-equity firm Warburg Pincus as it seeks to accelerate its expansion “through new site openings and strategic acquisitions and partnerships,” the companies said Tuesday in a joint statement.
CityMD did not disclose the terms of the deal, but Reuters reported Tuesday that the transaction valued the company at about $600 million, including debt.
Founded in 2010, the chain has opened 68 locations in New York, New Jersey and Washington state, providing a more cost-effective and convenient alternative to emergency rooms. Its walk-in clinics have changed patients’ expectations for doctors’ offices thanks to extended night and weekend hours. The company serves more than 1 million patients annually and has about 300 employees.
“With our combined business objectives and their deep expertise in the health care sector, this partnership will enable CityMD to continue expanding as we strive to achieve our vision to build healthier communities by serving everyone,” Dr. Richard Park, CityMD’s chief executive, said in a statement.
Park, whose family owned retail businesses growing up, co-founded CityMD from a single clinic at East 86th Street between First and Second avenues, he told Crain’s in a 2015 interview.
“CityMD has established itself as a leading provider in the fast-growing U.S. urgent-care market by creating an exceptional patient experience and providing high-quality treatment at significantly lower costs than traditional visits to the emergency room,” In Seon Hwang, managing director at Warburg Pincus, said in a statement.
The urgent-care market is poised to expand as patients grow accustomed to convenient care for minor injuries and illnesses.
As CityMD has grown, the chain has needed to convince doctors and insurers that it was providing quality care. Local health systems have bought in. CityMD has partnerships with Mount Sinai, Catholic Health Services of Long Island and Hackensack University Medical Center.
It generates leads from doctors when their offices are closed and links with their network of specialists to refer patients needing more complex care. There are more than 50 locations in New York City, Long Island and Westchester alone.
Park described convincing patients that CityMD provides quality care as a key to its success during a Crain’s forum this past June.
“I’m not talking about just any level of trust,” he said. “You need to create Oprah-like trust.”
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