Fresenius takes majority stake in Sound Physicians

Fresenius Medical Care, one of the biggest dialysis providers in the U.S., has an agreement to take a $600 million stake in Sound Physicians, becoming its majority shareholder.

With the investment, the Bad Homburg, Germany-based company follows in competitor DaVita HealthCare Partners' footsteps in assembling the resources to manage a broader spectrum of care for its patients, who typically have multiple chronic conditions. Sound Physicians, headquartered in Tacoma, Wash., has more than 1,000 hospitalist and post-acute physicians practicing across the U.S., according to the company's website.

“This investment in Sound's inpatient expertise is a significant step forward in our care-coordination strategy,” Ron Kuerbitz, CEO of Fresenius Medical Care North America, said in news release announcing the deal Friday. The company operates 2,150 dialysis clinics and 53 vascular-care centers, as well as a renal pharmacy and clinical labs.

Fresenius said it expected the deal to close within 10 days; Sound Physicians is expected to generate about $500 million in revenue for Fresenius in the next 12 months.

In 2012, DaVita paid $4.4 billion to acquire medical group operator HealthCare Partners as part of an effort transform itself into an integrated delivery company.

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