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Shining a light on PE ownership.

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CO

Confluent Health

healthcare
PE-OWNED

Operates outpatient physical therapy and occupational therapy clinics.

PE-OWNED

Acquired by TPG Capital2017-08-31

View PE Firm Profile

What Made It Great

“

High-quality outpatient rehabilitation with clinical excellence focus

What PE Will Likely Do

Predictions

Reduction in the number of physical and occupational therapists, leading to longer wait times for appointments and decreased one-on-one therapy time with patients

HIGH LIKELIHOODBased on: TPG Capital's history of aggressive cost-cutting and operational 'optimization' tactics in acquired companies

Closure of some less profitable clinic locations, forcing patients to travel further to access care

HIGH LIKELIHOODBased on: The healthcare industry playbook that shows a high frequency of staffing reductions, billing upcoding, and service line cuts by private equity firms

Increased emphasis on billing for higher-reimbursement procedures and diagnoses, even if they are not clinically necessary

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.18, indicating that TPG's approach is likely to harm the quality of care for Confluent Health's patients

Deferral of investments in new equipment and technology, resulting in outdated or malfunctioning rehabilitation devices

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.18, indicating that TPG's approach is likely to harm the quality of care for Confluent Health's patients

Increased patient-to-therapist ratios, leading to shorter appointment lengths and reduced individualized attention

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.18, indicating that TPG's approach is likely to harm the quality of care for Confluent Health's patients

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements of 'optimization' and 'efficiency' programs, potential leadership changes

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Gradual staffing cuts, clinic closures, and changes to billing practices begin

12-24 months

“12 to 24 months months”

Noticeable decline in service quality, with longer wait times, reduced therapy time, and older equipment

24-36 months

“24 to 36 months months”

Potential for major quality issues, such as patient safety incidents or regulatory violations

36+ months

“36+ months months”

Possibility of bankruptcy, clinic closures, or sale to another operator that may further erode service quality

Similar Cases

Other companies that followed a similar path after PE acquisition

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Cerberus Capital Management·2010

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US Dermatology Partners

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Hahnemann University Hospital

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Sound Physicians

Summit Partners·2019

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What You Can Do

Take Action

Actions

  • Monitor for any changes in the availability of physical and occupational therapy appointments, as well as the length and quality of those appointments

  • Be vigilant for any unexpected or questionable billing practices, and advocate for transparent and appropriate billing

  • Stay informed about any clinic closures or changes in the rehabilitation equipment and technology available at Confluent Health locations

  • Consider seeking alternative healthcare providers if the quality of care at Confluent Health deteriorates significantly

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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