On the surface, it seems like the kind of event that has become commonplace in urgent care: A large, national company buys an existing business, or a piece of one, to bolster its presence and profitability. Concentra’s acquisition of PhysicianOne’s occupational health business in Connecticut could have more far-reaching implications for the industry as a whole, however. With high workers compensation fees, robust volume, and a dense footprint, Connecticut is already one of the most profitable states for Concentra. And the company’s recent track record, which includes purchase of Community Health Network’s employer-paid services and workers comp business in Indiana, seems to reflect a shift away from buying entire practices. As one urgent care and occ med insider notes, “This is buying market share and eliminating urgent care competition.” In the bigger picture, this could indicate a fork in the road for urgent care and occ med owing to the difficulties inherent in trying to serve both a consumer and business-to-business customer base. Time will tell.
Does Concentra’s New Acquisition Foreshadow a New Era for UC and Occ Med?