Occupational Medicine Valuation Multiples and M&A Trends 2025
- Will Hamilton
- Feb 13
- 4 min read
Updated: 9 minutes ago
The occupational health industry has experienced steady low- to mid- single-digit growth over the past several years and is projected to continue expanding steadily in the coming decade. According to one source, the global market is forecast to reach $5.94 billion by 2030, growing at a CAGR of 3.4% from 2024-2030, while another source forecasts a 5.86% CAGR from 2024-2032 for the U.S. market, specifically.
Key Growth Drivers
Key growth drivers for the industry include the following:
Rising awareness of occupational hazards and workplace safety
Increasing focus on employer-sponsored health coverage and wellness programs
Growing prevalence of work-related stress, injuries, and illnesses
Stricter regulatory frameworks mandating occupational health service
Technological advancements enabling telehealth and digital health monitoring
Aging workforce requiring specialized occupational health support
Emphasis on mental health and work-life balance in corporate settings
Integration of artificial intelligence for health monitoring and predictive analytics
Occupational Medicine M&A Activity
Occupational medicine announced M&A deal volume declined in 2024, but this appears to more blip than trend. Deal announcements are dominated by private equity firms and platform companies as smaller owner / operator buyer acquisitions typically do not get announced publicly. The small handful of PE-backed acquirers like Akeso and Agile slowed their activity in 2024, while Concentra, the major acquirer in the industry, paused M&A activity entirely, likely in preparation for its spinoff to new corporate entity by Select Medical. Concentra's acquisition of Nova Medical Centers (discussed more below) may be an early indicator of a change in strategy, as the $265 million investment comes after spending a total of $35.8 million on 12 acquisitions over the past four years.
The top four acquirers have accounted for slightly over 40% of the announced deals in our database dating back to 2019, with Concentra leading the way with slightly under 25%.
Occupational Medicine EBITDA Multiples
Single Clinics or Small Portfolios (typically revenue under $10M):
These companies usually sell for lower multiples, ranging from 3x to 6x EBITDA. The lower multiple is often due to higher operational risk, lower revenue diversification, and limited geographic reach, as well as a heavy reliance on the owner / operator, which can lead to employer contract retention and business continuity concerns.
Large, Established Regional Occupational Medicine Clinic Chains (revenue over $10M):
Larger, more established companies with proven profitability, strong brand equity, and a broader customer base may command higher multiples. These can range from 6x to 11x EBITDA, depending on size, local market conditions, service mix, growth rate, and the stability of the cash flow.
High-Growth, Tech-Driven Occupational Testing and Scaling Telemedicine Platforms:
Companies offering cutting-edge technologies, like proprietary testing capabilities, wearable monitoring devices, or scalable virtual care platforms, with strong, continuing management teams can command multiples in the 12x to 18x EBITDA range, especially if they have demonstrated the ability to grow quickly with favorable unit economics. While publicly-disclosed financial information is sparse for this portion of the market, our database includes a handful of precedent deals, including several recent deals with reported EBITDA multiples in the 14x to 16x range.
Concentra's Acquisition of Nova Medical Centers
In connection with its FY 2024 earnings release, Concentra announced the acquisition of Nova Medical Centers, a prominent operator of occupational medicine clinics with 67 locations in Texas, Georgia, Tennessee, Indiana, and Wisconsin. The transaction values Nova at $265 million and is expected to be financed using a combination of cash on hand, available borrowing capacity under an existing revolving credit facility, and new debt financing. Nova Medical Centers has been operating for over 30 years and provides workers’ compensation injury care services, physical therapy, drug and alcohol screening, and pre-employment physicals as part of their full suite of occupational health services.
According to Concentra's FY 2024 earnings presentation, Nova Medical Centers generated revenue and EBITDA of $130.3 million and $28.3 million, respectively, implying a 2.0x revenue multiple and a 9.4x EBITDA multiple. The EBITDA multiple is slightly below the multiple Select Medical originally paid for Concentra back in 2015 (10.2x) and well-below Concentra's current multiple as a public company, which is currently slightly above 12x LTM EBITDA on an enterprise value basis. Concentra also expects Nova's EBITDA to increase under its ownership through both cost synergies and revenue growth, leading to purchase multiple equal to <7.5x year three projections.
Factors Impacting the EBITDA Multiple for Occupational Medicine Practices
Acquisition multiples are a function of perceived risk and growth. Key considerations within the occupational medicine industry include the following:
Payer Mix and Employer Contracts: The mix of payers (e.g., employers, workers' compensation insurers, government programs, employers) and the strength of contractual relationships with employers are critical. Practices with long-term contracts with reputable employers or insurers are seen as more stable and less vulnerable to business disruption.
Technology and Innovation: Firms that invest in new technologies (e.g., testing technology, remote monitoring devices, virtual care platforms, etc.) are more attractive to investors, especially if they have a competitive edge in this area.
Operational Efficiency: Margins can vary significantly across the occupational health industry, and higher margins typically mean higher multiples. Investors funding the growth of a business prefer to do so as profitably as possible.
Regulatory Environment: Compliance with OSHA, DOT, and workers’ compensation regulations is crucial. Practices with minimal legal risks and strong compliance programs are viewed as safer investments, positively impacting their multiple.
Actively Listed Occupational Medicine Clinics for Sale
There are a number of small, subscale occupational medicine clinics listed for sale currently, but it's difficult to glean much useful information from clinics so small where the level of owner involvement is unclear. A clinic making $200k per year in cash flow for an absentee owner is much different from a clinic making $200k per year in take-home for a full-time clinical physician-owner.
About Scope Research
Scope Research compiles a variety of healthcare M&A databases and provides healthcare valuation services. The Scope Research Healthcare M&A Valuation Database currently has financial details for 144 primary care, urgent care, and occupational medicine deals going back to 2010, 86 of which include reported EBITDA multiples. The data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
Don't hesitate to reach out to Will Hamilton at will@scoperesearch.co with questions about our occupational medicine valuation services or healthcare M&A databases.