Demand for integrated specialty care prompted two initial public offerings by single-specialty practice management companies in June.
American Oncology Resources, based in Houston, raised $115 million to fund its aggressive acquisition strategy.
Physicians Resource Group, which will integrate eye care, raised $40.3 million.
American Oncology Resources-the second oncology management company to go public-achieved one of the highest market capitalizations for physician-practice management companies at an initial public offering.
Proceeds will be used to retire $35 million in debt under the company's revolving credit facility, with most of the remainder going to buy practices. American Oncology has 12 practices with 90 physicians in nine states.
A similar oncology company, Dallas-based Physician Reliance Network, netted $48.8 million in its IPO last November and $43.4 million in a subsequent offering. Physician Reliance Network has 146 physicians at 40 sites, mostly in Texas.
Several companies have formed to organize primary-care physicians or multispecialty groups, but there's also a market for companies that can manage costly cases such as diabetes, cardiovascular disease and orthopedics.
Physicians Resource Group, also based in Houston, has no track record. Its first action will be to use $13.3 million to buy its 10 founding practices, which have 47 offices and 70 eye-care professionals in five states.