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Shining a light on PE ownership.

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CO

Concentra

healthcare
PE-OWNED

Occupational health and urgent care provider.

PE-OWNED

Acquired by Welsh, Carson, Anderson & Stowe2015-06-01

View PE Firm Profile

What Made It Great

“

Keeping workers healthy through occupational medicine and injury prevention.

What PE Will Likely Do

Predictions

Concentra will cut staffing levels, replacing registered nurses (RNs) with less-skilled licensed practical nurses (LPNs) or nursing assistants to reduce labor costs

MODERATEBased on: The private equity firm's track record of cost-cutting and service reduction in healthcare acquisitions

Concentra will sell its clinic real estate and lease it back, extracting equity for investors while potentially increasing rents

MODERATEBased on: The industry playbook that shows the frequency of common private equity tactics in the healthcare sector

Concentra will upcode medical procedures and diagnoses to bill for higher reimbursements from insurance providers

MODERATEBased on: The lack of any recorded failures for this specific private equity firm, suggesting they have experience executing these strategies

Concentra will eliminate certain unprofitable but essential services like occupational health screenings, injury rehabilitation, or specialized care for high-risk workers

MODERATEBased on: The lack of any recorded failures for this specific private equity firm, suggesting they have experience executing these strategies

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Concentra will announce 'optimization' initiatives and shuffle leadership, giving the appearance of improving efficiency

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Staffing cuts will begin, with Concentra citing the need for 'right-sizing' and 'streamlining' operations

12-24 months

“12 to 24 months months”

Patients will notice a decline in service quality, with longer wait times, rushed appointments, and reduced access to specialty services

24-36 months

“24 to 36 months months”

Major issues will emerge, such as the closure of certain clinics or departments, and potential quality scandals due to substandard care

36+ months

“36+ months months”

Concentra may face financial distress, leading to potential bankruptcy, hospital closures, or a fire sale to another operator

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

Steward Health Care

Cerberus Capital Management·2010

See full case study
Operating

Envision Healthcare

KKR·2018

See full case study
Operating

US Dermatology Partners

Ares Management·2016

See full case study
Operating

Hahnemann University Hospital

Cerberus Capital Management·2018

See full case study
Operating

Sound Physicians

Summit Partners·2019

See full case study

What You Can Do

Take Action

Actions

  • Monitor for any changes in the quality of care at Concentra clinics, such as longer wait times, reduced access to specialized services, or a perceived decline in the expertise of clinical staff

  • Be vigilant for any changes in billing practices, such as unexpected charges or the bundling of services that were previously billed separately

  • Consider alternative healthcare providers, especially for routine occupational health services or urgent care needs, if the quality of care at Concentra declines significantly

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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"Concentra is now PE-owned. Here's what that means for you."