Private equity-backed and value-based care-focused cardiology group acquisitions have become an almost weekly occurrence in 2023, but Cardiovascular Associates of America’s (CVAUSA) acquisition of NovoCardia introduced a new telehealth-led angle to this trend.
Novocardia launched in 2020 with a vision of becoming a leading value-based care cardiology practice platform, and had since amassed $53.7M in funding and acquired two practices. In addition to helping its practices transition to VBC, Novocardia built a name for itself through innovative “telehealth-first” programs to support chronic patients and to give its practices a streamlined alternative to using a fragmented combination of solutions.
- Now Novocardia becomes “the Value-Based Care Division of Cardiovascular Associates of America,” responsible for developing new cardiovascular disease management programs (likely “telehealth-first”) and new value/risk-based reimbursement frameworks.
CVUSA and its private equity backers have been on an acquisition spree since forming in 2021, including seven acquisitions in 2022 and five so far in 2023 (including Novocardia), giving it 11 practices with over 100 locations in eight states, and more than 200 physicians serving 400k patients.
- CVUSA has more acquisitions lined up, with plans to increase its physician workforce to over 450 by the end of 2023 (including >300 in Florida), and it appears that CVUSA will use Novocardia’s VBC enablement value proposition to drive much of that practice expansion.
Cardiology practices were late to the private equity consolidation party compared to other specialties (e.g. radiology, dermatology, gastroenterology), but that’s changing fast as multiple PE-backed cardiology practice management organizations make their way across America with VBC-focused strategies.
Although many of these PE-backed cardiology MSOs promise similar benefits to their cardiology group acquirees (an exit, “autonomy,” infrastructure, ability to scale, funding for ASCs), it appears that CVUSA just added a unique differentiator: a telehealth-first platform that can actually drive lower care costs.