Spring Mountain Capital has made a growth equity investment in Activate Healthcare. Headquartered in Indianapolis, IN, Activate Healthcare was formed in 2009.
Spring Mountain Capital, LP, a New York-based investment management firm, announced today that its private equity group structured and led a multimillion dollar growth equity investment in Activate Healthcare, LLC.
Activate Healthcare is transforming the primary care delivery model by developing and managing the next generation of workplace health clinics. On average, Activate clients see a $2 – $4 return for every dollar they invest in a clinic, and employee participation is often in excess of 90%. Unlike other models, Activate dedicates a full-time physician to each clinic, so employees receive proactive, preventative, relationship-based primary care.
“Over the past five years, we have built a strong regional network of primary care health clinics located within or near a workplace. Spring Mountain Capital’s investment will allow us to amplify those successes and take Activate Healthcare to the next level as we expand into new markets,” said Activate principal and co-founder Peter Dunn. “The on-site model represents the future of healthcare in America, and our clients routinely see their employees’ health improve while their insurance costs decrease. It’s a win-win for everyone involved.”
In today’s healthcare system, payors have systematically cut the reimbursement rate to physicians for primary care visits. As an offset, doctors have been required to increase the number of patients seen each day, significantly decreasing the time spent with each patient. As a consequence, primary care has evolved into a reactive, episodic, acute care-oriented model that is less able to manage chronic diseases and less effective in providing preventative care.
“The overall experience of having a dedicated primary care physician and health coach creates a quality and continuity of care that improves the overall health of the patient and their quality of life,” said Activate principal and co-founder Debra Geihsler, a former healthcare CEO. “Not only does the patient appreciate this type of care, but the providers enjoy practicing medicine in a way that they were trained to practice. This benefits the patient, the provider, and the employer.”
Dunn and Geihsler founded Activate Healthcare in 2009. The Company has 20 clinics throughout Indiana and the Midwest. Activate recently announced an expansion into Wisconsin.
“We look forward to our new partnership with Activate Healthcare and working closely with Debra and Peter as they look to execute on their innovative approach to reducing healthcare costs for employers while providing high quality care for employees,” said Jamie Weston, Managing Director in Spring Mountain Capital’s private equity group. “Our private equity group looks to invest in growth equity opportunities like Activate Healthcare that are leading a paradigm shift in their industry.”
ABOUT SPRING MOUNTAIN CAPITAL, LP
Founded in 2001 and located in New York City, Spring Mountain Capital, LP (“SMC”) is a private investment management firm that focuses on alternative asset investing and offers investors a wide range of strategies designed to produce attractive risk adjusted returns. SMC has a dynamic and opportunistic mindset with a client-oriented focus that drives it toward providing investors with intelligent and sophisticated investment opportunities. The private equity group at SMC makes growth equity investments in small capitalization companies. Its “investing in the gaps” philosophy capitalizes on market dislocations, information asymmetry, illiquidity and complexity. It seeks to invest in opportunities that benefit from break-through innovations, paradigm shifts, or fundamental market or behavioral changes.
ABOUT ACTIVATE HEALTHCARE, LLC
Headquartered in Indianapolis, IN, Activate Healthcare was formed in 2009 by Debra Geihsler and Peter Dunn with the goal of transforming healthcare by delivering primary care that engages the patient, supports a culture of health, guides the healthcare continuum to lower costs, and enables employers of all sizes to benefit from dedicated care. The company currently serves approximately 40 to 50 employers through 20 clinics.
For further information:
Raymond L.M. Wong (212-292-8334)
Jamie Weston (212-292-7056)
SOURCE Spring Mountain Capital, LP