On May 7, 2021, the operator of a major pipeline system that transports fuel across the East Coast fell victim to a ransomware attack that resulted in a six-day shutdown. Over the following week, East Coast stockpiles of gasoline dropped by about 4.6 million barrels and gas prices surged to their highest levels in six
Healthcare & Life Sciences Private Equity Deal Tracker: Grant Avenue Acquires QHR Health
Grant Avenue Capital has announced it acquired a majority interest in QHR Health from Quorum Health Corp.
QHR Health, based in Brentwood, Tenn., provides solutions to independent hospitals and health systems. Founded in 1977, these solutions and services include management advisory services, revenue cycle management, supply chain optimization, outsourced IT services and strategic consulting.…
Frazier Healthcare Partners Closes $1.4 Billion Growth Buyout Fund
Frazier Healthcare Partners has announced it has closed its 10th private equity fund focused exclusively on the healthcare middle market.
The oversubscribed fund — Frazier Healthcare Growth Buyout Fund X — hit its hard cap of $1.4 billion in capital commitments.
With the addition of new fund, Frazier Healthcare Partners has now raised more than $6.2…
Women in PE to Know: Christie McFall
McGuireWoods has long been an avid supporter of the advancement of professional women. As part of our initiative seeking to expand the leadership of women in private equity, we are continuing our series of profiling women leaders in private equity. We are hopeful that this series will serve to inspire other women to pursue their…
As HIPAA, HITECH Undergo Modernization, NIST Seeks Comment on Security Standard Guidance
On January 21, 2021, the Department of Health and Human Services (HHS) published proposed modifications to the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the Health Information Technology for Economic and Clinical Health Act of 2009 (HITECH), discussed in a previous McGuireWoods’ post. The comment period for these proposals recently ended on May 6, 2021, and HHS received almost 1500 comments from interested stakeholders. If finalized, these proposals will require HIPAA-covered entities and business associates to implement many changes, including updates to their policies, procedures, security standards, notices of privacy practices, authorization and disclosure forms, and business associate agreements. In the age of digital targeting and ransomware, possibly the most important of these is a change to security standards.
Healthcare & Life Sciences Private Equity Deal Tracker: The Vistria Group Invests in Medalogix and Muse Healthcare
The Vistria Group has announced the recapitalization and a growth investment in Medalogix and Muse Healthcare.
Medalogix, based in Nashville, Tenn., is a data science company focused exclusively on home health and hospice.
Muse Healthcare, based in Shoreview, Minn., is a data science company that provides analytics designed to support hospice patient transitions.…
New Complaint – SEC v. Silver
By Jenny Yi
The SEC filed SEC v. Silver in the United States District Court, Southern District of New York on April 13, 2021, claiming Defendant Silver orchestrated and carried out a string of frauds to cover up tens of millions of dollars in losses on bad bets to keep his investment advisory business afloat. Specifically, the complaint alleges violations of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933.
Defendant Silver was the co-founder, managing partner, and chief operating officer of his business, International Investment Group LLC (“IIG”), which specialized in advising clients in investments in emerging market economies. IIG formed three private funds with stated strategies of investing trade finance loans marketed to qualified institutional investors.
Healthcare & Life Sciences Private Equity Deal Tracker: KKR Acquires Therapy Brands
KKR has announced it has closed previously announced acquisition of a majority interest in Therapy Brands.
Therapy Brands, headquartered in Birmingham, Ala., is a practice management and electronic health record software platform for mental, behavioral, substance use recovery, applied behavior analysis and physical rehabilitation healthcare providers. Founded in 2013, the company supports more than 28,000…
OIG Advisory Opinion Allows ASC Joint Venture by Management Company and Hospital-Employed Physicians
On April 29, 2021, the U.S. Department of Health and Human Services Office of Inspector General issued a favorable advisory opinion offering first-time guidance on the development and investment of an ambulatory surgery center owned jointly by a hospital, management company and physician investors employed by the hospital.
New Complaint – SEC v. Horwitz
The SEC filed SEC v. Horwitz in the Central District of California on April 5, 2021, alleging that Defendant Horowitz violated federal securities laws in connection with fraudulent promissory notes issued by Horwitz’s company. Specifically, the complaint alleges violations of Sections 17(a) of the Securities Act, 10(b) of the Securities Exchange Act, and 10b-5 of the Exchange Act Rules.
Defendant Horwitz was the owner and operator of Defendant 1inMM, which purported to be a company in the business of obtaining distribution rights to certain movies in order to license those rights to media companies like Netflix and HBO.