Warburg Pincus acquires majority stake in WebPT
Private equity firm Warburg Pincus has signed an agreement to buy a majority interest in the EHR developer WebPT, acquiring it from Battery Ventures.
WHY IT MATTERS
The investment will enable WebPT to boost its product offerings for outpatient physical therapists, occupational therapists and speech-language pathologists. The software-as-a-service vendor is deployed at some 15,000 clinics across the U.S.
With the deal, WebPT co-founder Dr. Heidi Jannenga will take the role of Chief Clinical Officer while maintaining ownership interest. She'll also continue to advise on the company's strategic direction and product innovation, while advocating for rehab therapy on a national and international scale.
"WebPT set out more than a decade ago to empower the PT, OT and SLP professions and fight for rehab therapy's rightful place in the healthcare continuum," she said in a statement. "Our new partnership with Warburg Pincus will give us the tools and resources we need to make the greatest possible impact on healthcare and help rehab therapists expand their reach to the millions of people who could benefit from receiving musculoskeletal care."
THE LARGER TREND
Projections suggest that the $35-billion rehab therapy market is set to expand in a big way in the years ahead, as active patients age and consumers seek treatment options that reduce opioid exposure.
WebPT points to an American Academy of Orthopaedic Surgeons report that shows nearly 127 million Americans (one in two adults) affected by a musculoskeletal condition – costing some $213 billion in annual treatment, care and lost wages.
"WebPT is a best-in-class rehab therapy platform and represents a significant opportunity for growth given the shift toward value-based care in the rehab therapy market," said TJ Carella, managing director of Warburg Pincus.
ON THE RECORD
"Rehab therapy has vast potential to improve health outcomes at scale and significantly reduce costs for patients and providers," said WebPT CEO Nancy Ham. "Currently, however, 90% of people who could benefit from rehab therapy aren't receiving it. We're on a mission to change that, and Warburg Pincus is perfectly positioned to help us scale to reach those individuals and affect the industry as a whole."