Chicago-based VillageMD, a national provider of primary care, has secured $80 million in funding. Athyrium Capital Management was the lead investor.
CHICAGO–(BUSINESS WIRE)–VillageMD, a national provider of primary care, announces that it has closed an $80 million growth capital financing round led by funds managed by Athyrium Capital Management, LP, a leading global investor in innovative, high-growth companies across the healthcare sector. VillageMD, through its partnerships with primary care providers, delivers solutions and services that improve clinical outcomes, enhance patient and physician satisfaction, and lower the total cost of care. VillageMD previously raised $36 million in a growth capital financing round led by Oak HC/FT in September 2015.
The VillageMD network now serves 2,500 primary care physician partners across six states, making it one of the fastest growing primary care providers in the U.S.
“Our partnership with Athyrium represents an important next step in the history of VillageMD,” said Tim Barry, VillageMD’s Chief Executive Officer. “While we are happy with the growth we have experienced in the last four years and expect continued growth in the future, we are most proud of the clinical and financial results we have been able to achieve with our primary care partners. This growth capital not only helps us expand into new markets but, most importantly, continue to invest in tools and technology that better serve primary care doctors and their patients. We are excited to partner with the team from Athyrium, given their track record of success and depth of experience in the healthcare sector.”
“We couldn’t be more excited about the opportunity to play a part in the VillageMD growth story,” said Hondo Sen, a partner at Athyrium. “Our firm strongly believes in the value creation opportunities available through innovative and disruptive, primary care-led models, and the VillageMD team’s proven track record of results uniquely positions the company as a critical change agent in U.S. healthcare by driving improved quality and cost outcomes through partnerships with their growing network of primary care provider partners.”
VillageMD provider partners leverage VillageMD’s data analytics, physician-based care coordination, and on-the-ground support resources, all of which have demonstrated significantly greater clinical improvements at a lower total cost of care. VillageMD’s clinical care model also aids its physician partners in providing more personalized attention, education, and support to patients via integrated care teams of health coaches, diabetes educators, pharmacists, and resource coordinators to address patients’ medical, emotional and social needs.
VillageMD’s value-based model of care is proven to drive results across multiple markets and across all patient populations – commercial, Medicare, Medicare Advantage and Medicaid. Practices that have adopted VillageMD’s patient-centric approach have been recognized by the Centers for Medicare and Medicaid Services for high quality and high-performance metrics, such as the following: admissions and readmissions rates 20 to 45 percent lower than the community, Medicare costs 20 to 45 percent lower than the community, and commercial costs 15 to 20 percent lower than the community.
VillageMD is a leading national primary care provider supporting physicians moving toward a primary care-led, high-value clinical model. VillageMD delivers data analytics, a physician practice-based care coordination model, leading technology, and on-the-ground support resources to make improvements at the point of care, resulting in high quality clinical outcomes across all markets and all patient populations. VillageMD also provides access to value-based reimbursement contracts that reward physicians for delivering high quality, cost effective care. VillageMD works with physician groups, independent practice associations, and health systems to improve quality, deliver a first-rate patient experience, and lower total medical costs in the communities they serve. For more information, please visit www.villagemd.com.
About Athyrium Capital Management
Athyrium Capital Management, LP (“Athyrium”) is a specialized asset management company formed in 2008 to focus on investment opportunities in the global healthcare sector. As of September 30, 2017, Athyrium had over $3.5 billion of assets under management. The Athyrium team has substantial investment experience in the healthcare sector across a wide range of asset classes including public equity, private equity, fixed income, royalties, and other structured securities. Athyrium invests across all healthcare verticals including biopharma, medical devices and products, and healthcare focused services. The team partners with management teams to implement creative financing solutions to companies’ capital needs. For more information, please visit www.athyrium.com.