Helping Entrepreneurs Realize their Dream
National Spine & Pain Centers is a provider of interventional pain management (IPM) services focused on relieving chronic, neck, back, and spine pain. IPM, a rapidly growing medical specialty, relieves pain through advanced, minimally invasive procedures while preventing costly, invasive surgery. At the time of Sentinel’s exit, NSPC supported 69 locally branded IPM clinics in seven eastern states ranging from Connecticut to North Carolina.
Background
NSPC was founded in 1998 by three physicians who had recently completed their anesthesiology residencies and pain management fellowships. By 2011, NSPC had established itself as a large and respected IPM group with nine clinics in Maryland and wanted to continue to expand in the highly fragmented IPM industry in Maryland and beyond. They sought a financial partner to help them build infrastructure to support growth and execute an acquisition strategy of like-minded practices. The founders selected Sentinel from a limited group of private equity buyers based on (i) our proven record executing acquisition strategies in healthcare services and helping companies build management and infrastructure and (iii) the chemistry and fit between Sentinel and NSPC’s founding physicians.
Opportunity
- To partner with a highly motivated group of founding physicians with a record of success and establish NSPC as the nation’s leading IPM platform
- To help the founders attract management talent and build the necessary infrastructure to support rapid growth
Accomplishments
Developed Infrastructure to Support Rapid Growth: Sentinel helped the founding physicians expand NSPC’s business development function, significantly enhancing NSPC’s growth pipeline and strengthening its capabilities to open de novo locations and systematically source, execute, and integrate affiliations. NSPC also developed standardized KPIs and implemented sophisticated IT and electronic health record systems to streamline practice management and position operating managers to be proactive rather than reactive.
Bolstered NSPC’s Management Team: To serve a rapidly growing group of affiliated clinics, Sentinel and the founders hired experienced healthcare services executives, including a CEO and CFO, to bring best practices to NSPC and free the founders to focus on doctor relationships and new business development.
Implemented an Aggressive Growth Strategy: Shortly after closing, NSPC completed a transformational add-on in Virginia that doubled its size and made NSPC the largest IPM practice in the nation. Over the next five years, NSPC opened 15 de novo offices and completed eight more add-ons in Connecticut, New Jersey, New York, North Carolina, West Virginia, and the District of Columbia.
Outcome
Under Sentinel’s ownership, NSPC’s clinic base grew more than sevenfold, from nine clinics in one state to 69 clinics in seven states, and its revenues increased fivefold. In 2017, having accomplished our investment objectives, NSPC was sold to another private equity firm in a highly successful transaction for Sentinel and its management partners.
Case studies have been selected for illustrative purposes for management teams of midmarket companies considering a partnership with Sentinel and should not be considered an offer or solicitation of services or an actual or implied endorsement of Sentinel or any security, investment, or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of Sentinel. A list and description of investments since Sentinel’s inception is available on this website.