Anesthesia Medical Group boss' new venture raises $42M

Denver investment firm among company's backers

A new venture helmed by the CEO of Anesthesia Medical Group has raised $42 million from an investor group that includes a Denver private-equity firm.

It's not clear exactly what PhyMed Holdings, which was founded earlier this year, plans to do with its cash. In a filing with the Securities and Exchange Commission, the company said it has recruited 63 investors. Among them is Excellere Partners, a middle-market specialist that has made a number of investments in the health care space. A number of Excellere principals have joined the board or executive team of PhyMed alongside Anesthesia Medical boss David Whitten, who was vice president of operations at PhyCor in the late 1990s.

PhyMed, which is based next door to AMG on 29th Avenue North, isn't the first side venture for Whitten. In 2004, he launched Syus, which helps health care providers improve the efficiency of their staffing models. That company last summer recruited HealthStream General Counsel Kevin O'Hara to be its CEO.