CityMD, the New York metro area urgent care provider, will soon go under the Warburg Pincus banner. The private equity firm is planning to acquire a majority stake in the healthcare services provider.
Warburg's interest is understandable. CityMD, founded by Dr. Richard Park in 2010, has experienced impressive growth. Dr. Park grew the operation from a single clinic to 68 locations serving more than 1 million patients annually (through a merger and start-ups). CityMD has a heavy presence in the New York metro area - the City, Long Island, northern New Jersey. Also, through a partnership with CHI Franciscan Health, CityMD operates clinics in Washington state.
With today's preference for convenience and as high-deductible health plan become more commonplace, patients will likely seek out urgent care centers to address certain health needs. Many clinics have already expanded their service menu to appeal to patients. In fact, Becker's Hospital Review reports that "adults under age 30 are more likely to visit an urgent care center than a primary care physician." Increased use of urgent care centers bodes well for the growth of the sector.