Crescent Capital puts home doctor service 24-7 on the block

Analysts believe that the business could be worth about $300m, although sources close to the company maintain the asking price is closer to $600m.

Australian private equity firm Crescent Capital is understood to have placed another business on the market, this time its home doctor service provider 24-7.

The company, which was previously called National Home Doctor Service, also owns 13SICK, which offers urgent medical care after hours.

The 13SICK business has 400 doctors offering services and patients are bulk billed with Medicare.

The doctors carry a bag stocked with starter packs of common medications to patients, so in many cases they can start treatment immediately. Following home visits, the service sends a medical report to the patient’s general practitioner the following day.

Crescent Capital is divesting its Myhealth Medical Group, founded by Dr James Liang in 2007, through advisory firm Rothschild and its Australian Clinical Labs business through Bank of America. DataRoom can reveal Rothschild has also been tapped to sell the 24-7 business.

It is understood to generate up to $10m of earnings before interest, tax, depreciation and amortisation.

Myhealth has more than 80 clinics across the three eastern states and is understood to generate between $25m and $30m of annual EBITDA.

It is understood that the Myhealth business and 24-7 online operation are held by Crescent in separate funds.

The 24-7 business is likely to appeal to private equity or private health insurers.

Meanwhile, Crescent Capital was in negotiations to sell its Australian Clinical Labs business to Healius last year.

It is third largest pathology player in the local market and comprises Healthscope’s former pathology assets, which were bought five years ago for $105m, and the operations formerly owned by St John of God.

Analysts believe that the business could be worth about $300m, although sources close to the company maintain the asking price is closer to $600m.

Pathology operations across the healthcare industry are returning to normal after volumes were down by as much as 30 per cent amid the onset of the COVID-19 pandemic.

Crescent recently acquired PRP Diagnostic Imaging.