OC Business Journal

CLINICS:

HEALTHCARE: PE-backed firm now counts eight clinics

■ By AUDREY KEMP

Occupational health-focused Akeso, with PE backing, building portfolio in state

In early 2020, Irvine occupational health clinic network Akeso Occupational Health said it was “looking for a few good workers’ compensation doctors” to join its private equity-backed medical firm that treats injured workers.

It’s found more than a few.

This month’s acquisition of Santa Maria-based clinic Industrial Medical Group (IMG) marks the eighth clinic in California that Akeso has purchased since the start of 2020 and represents part of its larger vision to create a “new occupational health solution,” Akeso Chief Executive Chuck Kruger told the Business Journal.

Kruger said that the company aims to expand its footprint in California to over 30 occupational health clinics within the next two years.

Akeso currently serves over 73,000 patients and processes over 67,000 claims every year, per the company’s website.

Kain Capital Backing

Founded in 2020, Akeso is creating a network of “top-performing” practices to bring every step of the worker’s compensation process under a single organization, said Kruger, who joined the company last year.

While highly specialized, Akeso also offers a number of other services to employers, from hearing conservation programs to drug and alcohol testing, as part of a “larger occupational health service.”

“We offer a streamlined alternative to what’s out there now,” Kruger added.

“By assisting the injured worker, employer and payor, we get the injured worker healthy and back to work as soon as possible, while keeping the employer’s cost and premiums down.”

IMG, its latest buy, specializes in providing occupational healthcare for agriculture, industrial and aerospace clients.

Other companies that Akeso has bought include ProCare Work Injury Center, an occupational medicine clinic with locations in Irvine and Huntington Beach; Wine Country Occupational Medicine of Napa Valley; South Coast Medical Clinic in downtown San Diego; and Coastal Occupational Medical Group in Ventura County.

Terms of the deals haven’t been disclosed.

The OC firm is backed by New York-based Kain Capital, a private equity firm that’s been primarily investing in healthcare-related ventures the past few years. Founder Kunal Kain serves as chairman for Akeso.

The PE firm has been a key investor “from the beginning,” Kruger said. The firm raised a “significant amount” to start the new company and “make acquisitions where [it] needed,” he said.

Revenue remains undisclosed, but Kruger described the state of the private company as “profitable and debt-free.”

It’s not focused on an exit or an IPO at this time.

Visiting Worksites

Akeso and its latest addition IMG are “aligned in the vision of a practice that provides quality care and streamlines the process for clients, said Dr. Paul Christensen, a physician at IMG.

“Our providers visit job sites to understand the challenges employers and employees face. I have ridden on a transplanting machine, walked the rows in a celery field and put on a SCAPE suit used to protect workers who fuel space rockets.”

Like Christensen, Akeso’s team “gets out and meets with HR and safety people on each worksite to assess what services the workers need,” from occupational health services to workplace safety programs, Chief Operating Officer Dr. Michael Byer told the Business Journal.

“Working crops is labor-intensive, backbreaking work. We have a different respect for people when we understand what they’ve been doing, whereas physicians and providers might dismiss somebody’s pain and assume they might just want time off,” Byer said.

Establishing Irvine Roots

Akeso established its corporate office in the Spectrum area of Irvine because “Orange County is a very dynamic area, with a combination of healthcare systems and a diverse group of employers,” Kruger said.

“It’s a great environment for us to start in. I’ve lived in Irvine for quite a long time and I’ve enjoyed the business here.”

Kruger has over 25 years of experience starting and leading rapidly growing private equity backed healthcare services companies, including clinical research organization TrialRunners and GoHealth Urgent Care, which he launched in 2016 and rapidly grew into the largest urgent care provider in San Francisco

“But this particular opportunity, in this environment and culture we’re creating, is unique and fun for all of us,” he added. “As we create this larger delivery system within the entire state, we can serve not only the important local employers but some of the larger regional and even national employers who want a one-stop shop.” ■

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