DuPage Medical Group eyes expansion with $1.45 billion investment

Aug. 16--DuPage Medical Group's management company just snagged its largest investment yet -- $1.45 billion from private equity firm Ares Management.

The investment, which closed Tuesday, will allow the medical practice to continue expanding with additional services, sites and doctors. The Downers Grove-based independent medical practice has grown rapidly in recent years and now boasts more than 800 providers, mostly in the west and southwest suburbs. It's already the largest independent physicians group in the state.

The new money will allow DuPage Medical Group to grow to 1,200 to 1,500 physicians over time and expand services such as imaging, immediate care, physical therapy and oncology, said group CEO Mike Kasper.

The money also could help the medical group expand further into the northwest suburbs and even beyond Illinois, Kasper said.

"It's an investment to grow our business and grow the number of physicians and services we provide in the metropolitan area and also start to take a look at, over a more intermediate period of time, what are the regional and national opportunities for our model," he said.

It will also help the group stay independent at a time when many other doctors groups across the country, facing financial pressures and increasing regulations, have been swallowed up by hospitals.

Before now, the largest investment in the group had been a $250 million infusion from Boston-based private equity firm Summit Partners last year. As part of this week's deal, Ares acquired Summit's stake in DuPage's management company, DMG Practice Management Solutions, so Summit will no longer be a partner.

DuPage's medical group will remain 100 percent physician owned and directed, Kasper said. It's not yet known how much of the management company Ares will own because DuPage physicians will have the opportunity to co-invest with Ares in addition to whatever equity in the management company they already have, he said. Ares is headquartered in Los Angeles.

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