New Enterprise Associates has acquired Paladina Health, a provider of primary care clinics, from DaVita. No financial terms were disclosed; however, a CNBC.com report on the deal stated the amount was about $100 million. Paladina Health currently operates more than 50 physician offices in Colorado, Washington, Texas, Wisconsin, Ohio, North Carolina, South Carolina, Kentucky, New Jersey and Florida.
DENVER, June 6, 2018 /PRNewswire/ — Today, Paladina Health, a company with an innovative primary care approach to delivering individualized health care, announced that global venture capital firm New Enterprise Associates (NEA) has acquired the wholly owned subsidiary from Fortune 500® healthcare services corporation DaVita Inc. The acquisition will position Paladina Health for continued growth and innovation as a leader in the direct primary care (DPC) market.
The U.S. healthcare system is the most expensive in the world, yet it underperforms relative to other countries regarding health outcomes, access, efficiency and quality performance. Paladina Health offers a unique approach to the way healthcare is delivered, financed and experienced.
“We are bullish on Paladina’s future and thrilled that New Enterprise Associates will be their new home,” said Kent Thiry, DaVita Chairman and CEO.
Paladina Health’s model was designed to address the main causes of poor quality and escalating costs in the healthcare system, including lack of physician access, care coordination, transparency into costs and quality of care. Paladina Health focuses on fixing the broken incentive structure between all parties involved – the physician, the patient, and the benefit sponsor. This is achieved through delivering optimal services to engage patients and driving significant change to health outcomes, patient satisfaction and cost.
“We’ve closely followed the ongoing shift to value-based care in the U.S., and believe that Paladina Health is a pioneer in the space,” said Mohamad Makhzoumi, General Partner and Head of Healthcare Services and Healthcare IT Investing, NEA. “Driven by a stellar management team, the company’s adaptive DPC model has proven to meet the growing needs of patients by delivering excellent care that not only results in high patient and provider satisfaction, but also drives down cost. We’re thrilled to partner with Paladina Health as they accelerate growth and continue to pioneer a better healthcare solution.”
Says Chris Miller, MBA, Chief Executive Officer with Paladina Health, “We are grateful for DaVita’s support over the past six years in building a foundation for Paladina Health’s successful model. During this time, we have delivered an exceptional patient and client experience with high quality care and lower costs, while allowing our physician-led care teams to return to the joy of practicing medicine. We look forward to impacting more lives in partnership with NEA and continuing our vision to transform primary care in America.”
Paladina Health currently operates more than 50 physician offices in Colorado, Washington, Texas, Wisconsin, Ohio, North Carolina, South Carolina, Kentucky, New Jersey and Florida, with plans for continued expansion.
About Paladina Health
Paladina Health is a physician-access model of health care that improves patient care and satisfaction by providing convenient and unhurried patient-centered care and a broad scope of services. Employers who offer Paladina Health to their employees aim to provide the highest-quality benefits while keeping a long-range view of improving the health and wellness of their covered population. For more information, visit paladinahealth.com.
New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With more than $20 billion in cumulative committed capital since the firm’s founding in 1977, NEA invests in technology and healthcare companies at all stages in a company’s lifecycle, from seed stage through IPO. The firm’s long track record of successful investing includes more than 220 portfolio company IPOs and more than 370 acquisitions. For additional information, visit www.nea.com