Knox Lane boosts All Star Healthcare Solutions with majority stake
CALIFORNIA and FLORIDA, UNITED STATES — Private equity firm Knox Lane has acquired a majority stake in All Star Healthcare Solutions (All Star), a healthcare staffing company focused on locum tenens placements.
All Star poised for expansion
The deal will enable All Star to capitalize on significant growth opportunities in the booming locum tenens market.
A locum tenens provider is a physician or advanced practice provider who fills in for another clinician when that clinician is unavailable.
Knox Lane’s investment will expand All Star’s consultant base, sales force, specialty teams, technology capabilities, and strategic acquisitions.
Ken Bernstein, All Star’s CEO and President, said the deal would boost the firm’s momentum in the future.
“We look forward to leveraging Knox Lane’s significant and direct expertise in the sector and operational resources to build on our strong foundation and capitalize on the many organic and strategic growth opportunities ahead,” Bernstein said.
BofA Securities, Inc. served as All Star’s exclusive financial advisor, and McGuire Woods LLP provided legal counsel.
In addition, Houlihan Lokey, Inc. served as a financial advisor, and Kirkland & Ellis LLP acted as legal counsel for Knox Lane.
Rosy outlook for locum tenens industry
Meanwhile, Shamik Patel, Partner at Knox Lane, and Brent Gunderson, Managing Director at Knox Lane, believe that All Star is set to benefit from the growing demand in the locum tenens segment.
The Staffing Industry Analysts (SIA) projects the segment will grow 8% in 2024. In 2023, SIA also found that around 50,000 doctors, or about 7% of the U.S. physician workforce, practice medicine through temporary assignments, marking an 88% increase since 2015.
Healthcare institutions continue to tap locum tenens to maintain access to care for patients and fill temporarily vacant positions when clinicians are on leave.
“Locum tenens provide a crucial safety net for continuing patient access to care while also giving physicians facing burnout a flexible way to continue practicing,” said CHG Healthcare CEO Scott Beck.
