Parallax Equity Partners advises Physicians of Southwest Washington in forming a strategic partnership with Multicare

Parallax was hired as exclusive financial adviser to Physicians of Southwest Washington to provide valuation work and assist in the negotiation of its transaction with Multicare. Physicians of Southwest Washington (PSW), an Independent Physician Association and headquartered in Olympia, WA.  PSW  entered into a minority investment agreement with Multicare to improve health care delivery and management in the Puget Sound region. PSW had been seeking a partner to help grow its geographic footprint and strengthen financial sustainability, while preserving the independent physician practice care model.

The partnership offers a path for regional provider groups to stay independent but have the support that comes from being connected to larger organizations, as the health care industry continues to embrace new risk-based payment models, and as both organizations continue to invest in the success of their Accountable Care Organizations (ACOs).

Under the terms of the agreement, MultiCare acquired a minority membership interest in PSW and have four seats on its nine-member board.

About MultiCare

MultiCare is a not-for-profit health care organization with more than 15,000 team members, including employees, providers and volunteers. Our comprehensive system of health includes numerous primary care, urgent care, specialty services and community outreach programs in both the Puget Sound and Inland Northwest regions, as well as MultiCare Connected Care, our Accountable Care Organization. Seven hospitals complete our organization: Allenmore Hospital, Auburn Medical Center, Deaconess Hospital, Good Samaritan Hospital, Mary Bridge Children’s Hospital — the Puget Sound region’s only children’s hospital and state-designated Level II Pediatric Trauma Center for Western Washington — Valley Hospital, and Tacoma General Hospital, which is home to the region’s only Level IV Neonatal Intensive Care Unit.

About PSW

Physicians of Southwest Washington (PSW) is an Independent Physician Association founded in 1995 by Thurston County physicians to provide continuity of health plan access and to maximize quality of care for their patients. PSW represents a network of more than 550 physicians and health care providers and on their behalf negotiates health plan risk-based contracts; provides care management, credentialing and claims processing; explores new business models to sustain independent practices; and is a 51 percent owner of NW Momentum Health Partners, a Next-Generation ACO.