Monday, November 14, 2011

TA Associates Completes Investment in Senior Whole Health

TA Associates, a leading global growth private equity firm, today announced it has completed an investment in Senior Whole Health, a leading health plan provider headquartered in Cambridge, Massachusetts. Terms of the investment were not disclosed.

Founded in 2004, Senior Whole Health addresses the needs of “dual eligibles”, individuals who qualify for Medicare – those aged 65 or over – and Medicaid – based on financial need. The company’s vision is to be a national leader in integrated healthcare that is simple, comprehensive, humane and respectful of its members. Senior Whole Health, ranked as the fastest-growing private company in the nation by Inc. magazine in 2008, integrates all Medicare, Medicaid and Medicare Part D Pharmacy benefits into a cohesive, comprehensive and easy to use plan. Senior Whole Health members and providers have 24/7 phone access to a Senior Whole Health Nurse Care Manager, and the company’s Community Resource Coordinators arrange and organize services and act as advocates for members. In addition, Senior Whole Health members and their caregivers have access to an array of home and community-based services to support members in their residence of choice – home, assisted living center, nursing home or other location.

“The Senior Whole Health model not only reduces hospital and nursing home admissions, it also lowers costs to the healthcare system,” said Mark Carter, a Principal at TA Associates who will join the board of Senior Whole Health. “With federal and state budgets facing record shortfalls, and the recently passed healthcare reform bill incorporating several provisions to improve the quality of medical care for the populations that Senior Whole Health serves, there is a growing need for the types of services the company provides. We anticipate a continuation of the company’s significant growth.”

“We are delighted to be partnering with TA Associates,” said John Baackes, Chief Executive Officer of Senior Whole Health. “TA has built a substantial track record as a successful investor in the healthcare sector - both in managed care and payor services. Importantly, TA understands the challenges and opportunities in the sector and we are confident they are the right partners for the next stage of our growth.”

The dual eligible population represents a large, underserved market with nine million beneficiaries across the country, of which only a fraction are currently enrolled in a fully integrated managed care program. In addition, the dual eligible population represents a disproportionate share of Medicare and Medicaid costs relative to enrollment – 21% of the Medicare population vs. 36% of dollars spent, and 15% of the Medicaid population vs. 39% of dollars spent.

“TA’s healthcare investment activity is focused on companies that improve patient outcomes and at the same time save the healthcare system money,” said Jonathan Goldstein, a Managing Director at TA Associates who will also join the board of Senior Whole Health. “Senior Whole Health’s investment in its members’ preventative care accomplishes both of these goals. We are proud to be associated with Senior Whole Health and its mission.”

TA Associates has more than four decades of investing experience, focusing on profitable growth companies. TA’s prior investments in the healthcare sector include Alere Medical, Amann Girrbach, AmeriChoice, Dr Lal PathLabs, Invitrogen, MedSolutions, Millennium Laboratories, MQ Associates, National Imaging Associates, Triumph HealthCare, Twin Med and WellMed Medical Management.

Goodwin Procter provided legal counsel to TA Associates. UBS served as financial advisor and Greenberg Taurig provided legal counsel to Senior Whole Health.

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