Case Study

Partnering with physicians and hospitals to create a unique endoscopic surgery center model

Pamlico is working with PE to set strategic initiatives, identify new growth verticals, and invest in key management team hires

Founded in 1998, Physicians Endoscopy (PE) is the leading developer, manager, and owner of freestanding, single-specialty endoscopic ambulatory surgery centers (ASC) in partnership with practicing physicians and hospitals. The company currently owns and manages 41 facilities across the United States, in partnership with over 300 gastroenterologists and 17 hospitals. The company values partnerships with practicing physicians and hospitals and typically owns a significant minority interest in each of its partner centers to align incentives appropriately. Because of its extensive focus in the area of GI endoscopy, PE has emerged as the preeminent developer and manager of endoscopy centers in the United States.

Pamlico initially met with CEO Barry Tanner in January 2013 and was immediately impressed with the company’s proven track record of opening de novo centers and its unique minority ownership model in partnership with physicians and hospitals.  Pamlico leveraged its previous investment experience with American Renal Associates and the success it had partnering with nephrologists to assess the market opportunity for Physicians Endoscopy. Pamlico ultimately partnered with management and invested in the company in August 2013.

Pamlico is working with PE to set strategic initiatives, identify new growth verticals, and invest in key management team hires. We are actively looking to invest in the business development organization to accelerate physician recruitment, new surgery center openings, and surgery center acquisitions. 

PE remains an existing Pamlico portfolio company, and we are working with management to support the company’s ability to partner with physicians and hospitals in their unique ASC model.