Water Street Healthcare Partners’ CareCentrix Inc. acquired Sleep Management Solutions LLC, which specializing in sleep benefits management. The transaction expands CareCentrix’s services to include sleep management. Water Street acquired a controlling interest in CareCentrix, which provides home health benefits management services to the managed care industry, in 2008.
CareCentrix, Inc. announced today that it has acquired Sleep Management Solutions, LLC (SMS), a company specializing in sleep benefits management. CareCentrix is the nation’s leading provider of home health benefits management services to the managed care industry. It coordinates care for patients in the home including skilled nursing services, durable medical equipment and home infusion therapies.
With the acquisition of SMS, CareCentrix expands its services into the fast-growing area of sleep benefits management. SMS provides health plans a comprehensive program focused on improving patient outcomes and reducing the cost of sleep services. The company provides Home Sleep Testing (HST) technology to qualifying patients who conduct their prescribed sleep diagnostic test in their homes, enabling a more natural environment for testing at less cost than a facility. SMS also follows up with people who are approved for sleep therapy devices to ensure they are using the equipment properly and following their prescribed treatment. HST adoption has increased significantly since the Centers for Medicaid and Medicare Services approved it for treatment in 2008.
“As awareness of sleep disorders has grown, employers and insurers have seen a 15 – 20 percent annual increase in the cost of diagnostic testing and medical equipment to treat these conditions. SMS’s home testing program has saved health plans approximately $.50 per member per month on their benefit spend. Its integrated approach to sleep benefits management is directly in line with CareCentrix’s vision to bring innovative home-based services to health plans and their members that result in improved quality of care at a reduced overall cost of care,” said Eric Reimer, chief executive officer, CareCentrix.
“We are excited to join CareCentrix. Our companies share a common vision to bring high-quality services into the home setting where the individual is most comfortable and costs are lower,” said Tom Gaffney, chief operating officer of SMS, who has been appointed senior vice president of sleep management services at CareCentrix. “The combination of SMS’s end-to-end sleep management system with CareCentrix’s expertise in home benefits management and cost containment will bring additional savings and benefits to our existing and new customers.”
CareCentrix partnered with Water Street Healthcare Partners, a strategic private equity firm focused exclusively on health care, in 2008 to become a standalone company. Since then, it has undergone a strategic transformation to expand its core services with the goal of proactively helping health care plans and providers improve patient outcomes and reduce health care costs. In two years, CareCentrix has increased its contracted revenues from $315 million to approximately $600 million.
Founded in 1996, CareCentrix manages home nursing, infusion and medical equipment services for more than 20 million people across the country through a network of 5,000 credentialed home care providers. The company provides health care plans and providers with a one-stop solution that coordinates care for patients in the home including skilled nursing services, durable medical equipment and home infusion drug therapies. CareCentrix recently expanded its services with the development of a new program that will help payers and providers reduce the rising rate of hospital readmissions. CareCentrix is headquartered in East Hartford, Connecticut, and has operations in Melville, New York; Phoenix, Arizona; Tampa, Florida; Albuquerque, New Mexico; and Overland Park, Kansas. For more information about CareCentrix visit www.carecentrix.com.
About Sleep Management Solutions
Founded in 2006 Sleep Management Solutions, LLC is the first Sleep Benefits Management Company in the country developed to work with the payer community to effectively manage the growing costs associated with sleep services. The company provides an end-to-end integrated approach to managing the sleep continuum with a keen focus on enhancing both clinical and financial quality for payer clients. Sleep Management Solutions has offices operations in Suffield, Connecticut, Charleston, West Virginia, East Longmeadow, Massachusetts; and Greensboro, North Carolina. For more information about Sleep Management Solutions visit www.sleepmanagementsolutions.com