The managed care-giant Centene Corporation is divesting a majority share in U.S. Medical Management, LLC (USMM) to several buyers in a deal announced earlier in November. No price was disclosed for this deal, but Centene purchased USMM in 2013 for $200 million, or 0.6x that year’s expected revenue for USMM.
USMM provides a continuum of in-home services including primary care, health risk assessments, home health, hospice, podiatry, radiology DME, lab and pharmacy. USMM also owns several allied health assets, which assist in the provision of home-based primary care and furthers the value and efficiency of house call medicine. USMM Accountable Care Partners (USMM ACP) launched as an accountable care organization in 2015, and today, is the only ACO focused solely on the frail, disabled or home-limited populations. Over the past five years, USMM ACP has demonstrated savings for its Medicare beneficiaries of $154 million.
The buyers are Rubicon Founders, Valtruis, a Welsh, Carson, Anderson & Stowe (WCAS) company, Oak HC/F and HLM Venture Partners. Rubicon Founders is a venture capital firm focused on building and growing transformational companies. and Valtruis partners with entrepreneurs and leaders at healthcare organizations to focus on building a value-based care model. Oak HC/F is a venture capital firm with $33 billion in assets under management, and HLM Venture Partners is a venture capital firm focused on the digital health market.
Evercore is serving as financial advisor to Centene, and Skadden, Arps, Slate, Meagher & Flom LLP and Locke Lord LLP are serving as its legal counsel. Ropes & Gray LLP is serving as legal counsel to WCAS. Centene will retain a minority stake in USMM.
