Hospital staffing group Sound Physicians closed a transaction Friday, giving the business access to $125 million in new capital.
Sound, whose roughly 4,000 clinicians work in more than 400 hospitals across 45 states, collaborated with lenders to refinance debt and extend the maturity timeline on nearly all its loans until 2028, according to a Friday news release.
Related: Health systems are taking a closer look at staffing fees. Here's why.
A Sound spokesperson said the $125 million can be invested in technology systems, analytics and back-office operations, in addition to its accountable care organization for long-term care patients. Some of the capital goes toward transaction and administrative fees.
The group also wants to offer more consulting to hospitals on clinical expertise and performance management, the spokesperson said.
Nearly all of Sound's investors and lenders participated in the transaction, according to the news release.
The transaction comes less than a year after Jeff Alter was named CEO of the medical group, succeeding founder Dr. Robert Bessler.
Sound has been struggling financially, with multiple credit rating downgrades in the past year and a half due to declining cash flow and high debt levels. The No Surprises Act that took effect in 2022 caused problems for some physician staffing groups, eliminating many of the out-of-network bills on which they were relying for profits.
Among Sound's investors are private equity firm Summit Partners, a majority investor, and UnitedHealth Group's Optum, which holds a minority stake.
