SC&H Capital, a leading investment banking firm, is pleased to announce that its client, State of Franklin Healthcare Associates (“SOFHA” or the “Company”) has divested its interventional pain management center (the “Center”) to Spine and Pain Associates (“SPA”).
SOFHA is a physician-led, employee-owned medical group founded in 1998 and headquartered in the Southeast U.S., providing primary and specialty care across more than 30 locations. As an early adopter of the value-based care model, the Company achieved strong year-over-year growth through attractive Medicare Advantage contracts and a highly successful clinical coordination team. The Center is a leading provider of interventional pain management, offering patients non-surgical, minimally invasive solutions for chronic pain, delivered by an experienced physician team.
In 2024, changes to the value-based care reimbursement landscape reduced the Company’s value-based care revenue, while high non-clinical expenses and a challenging provider compensation model pressured profitability. In response, the Company implemented a series of strategic initiatives — including the divestiture of the Center — to strengthen its financial position and focus on its core primary and specialty care operations.
SC&H Capital was retained as the exclusive investment banker to advise the Company and execute the divestiture. Through a comprehensive, competitive process spanning strategic and financial buyers in the pain management and physician-services space, SC&H negotiated a transaction with SPA, a dedicated interventional pain platform, resulting in SPA’s acquisition of an established center with experienced physicians, preserving continuity of care for SOFHA’s patients.
The transaction closed in June 2026.
About SC&H Capital
SC&H Capital is an investment banking and advisory firm specializing in mergers and acquisitions (M&A), employee stock ownership plans (ESOP), distressed M&A, capital raises, financial restructurings, and business valuations for middle-market companies nationally. SC&H Capital delivers services across numerous industries including technology, healthcare, manufacturing, consumer, business and professional services, and government contracting. We are recognized for delivering relevant market insights and tailored solutions to help owners achieve their true strategic value. To learn more, visit www.schcapital.com.
