GE Healthcare Financial Services, the healthcare financing arm of General Electric Co., said today that it will move into lending for physician practices by purchasing Boston-based investing firm HPSC for $72.4 million in stock.
"The transaction will give us a platform to extend our position in the rapidly growing physician/dental practice industry," says GE Healthcare Financial Services President and CEO Rick Wolfert.
HPSC, with more than $1 billion in managed assets, lends money for medical and dental practices to acquire other practices, purchase real estate and equipment, secure professional liability insurance and offer financing to patients. GE Healthcare Financial Services currently does not concentrate on private practices, spokesperson Deia Lofendo says.
This is the first acquisition for GE Healthcare Financial Services since GE created the division in 2002 with its purchase of Chicago-based Heller Financial.
GE says it expects the deal to close late this year or early in 2004.