New firm takes over 60 GP practices from US insurer

Centene bought the group, now known as Operose – which runs GP surgeries across England – in 2021 and put it up for sale this summer.

HCRG Care Group, which was formerly known as Virgin Care, has had its offer to buy the business accepted, HSJ understands.

An HCRG spokesman told HSJ: “We have agreed with Centene a proposal to transfer ownership of Operose Health and AT Medics to our UK-based health and care organisation. Our agreement specifically acknowledges the next step as a formal change of control process by local NHS commissioning organisations and we have been, and will continue to, engage constructively with this formal process to demonstrate the benefits to patients and commissioners.”

Operose grew considerably in 2021 when it bought AT Medics, seeing the number of patients registered with it go from 160,000 to 601,000, its last annual accounts report said. AT Medics run services in each of London’s five integrated care systems. 

Operose’s annual report covering 2021 showed a turnover of £89m and it was reported earlier this year it might sell for eight times its earnings before income tax, depreciation or amortisation, around £51m. It is thought to run about 60 practices.

The five integrated care boards in the capital – which are major commissioners of the services affected – must now sign off on the change of ownership.

HCRG Care Group runs community and health services in Kent, Hampshire, the West Country and North West. At the end of March 2022 the company had a turnover of £248m.

Twenty20 Capital bought Virgin Care in December 2021 and changed the name to HCRG Care Group. At the end of March 2022 Twenty20 Capital had £35m in total equity. Its sole director is Tristan Ramus, who also chairs HCRG, a company that owns a number of recruitment businesses, including HCL in the health sector.

The HCRG Care Group spokesperson added: “We are committed to supporting Operose Health’s continued delivery of local high-quality NHS primary care and contractual responsibilities, which aligns with our track record of delivering for patients, communities and the NHS over the last 15 years.”

Centene sold the Circle Health Group/BMI private hospitals group to the United Arab Emirates’ PureHealth Group in August.

The Missouri-based Fortune 500 company – a managed care operator and health insurer in the US – invested in Circle in 2019 and bought it outright in 2021.