Private equity firm the Blackstone Group, New York, acquired a controlling interest in healthcare staffing firm Team Health, Knoxville, Tenn., for undisclosed terms. Blackstone purchased the majority stake from a trio of investment firms that bought into Team Health six years ago -- Beecken, Petty, O'Keefe & Co., Chicago; Cornerstone Equity Investors, New York; and Madison Dearborn Partners, Chicago. The deal won't affect the equity held by Team Health management or the firm's existing business lines, a Team Health spokeswoman said. At deadline, it was unclear if the ownership change would affect Team Health's plans for an initial public offering later this year. Team Health lost $49.2 million on revenue of $1 billion in 2004, according to its prospectus.
Separately, healthcare consulting firms Wipfli, Wausau, Wis., and Partners Healthcare Consulting, Minneapolis, announced they had merged effective Sept. 1. Financial details were not disclosed. The firms said the merger, one of several recent alliances among healthcare consultants, will provide additional growth opportunities. Wipfli has about 650 associates in 18 offices across Wisconsin and Minnesota. It will add nine associates from Partners with experience in medical group management, ambulatory healthcare administration and finance. -- by Melanie Evans and Michael Romano