Water Street Healthcare Partners Buys New Century Health

Chicago-based firm Water Street Healthcare Partners has acquired a majority stake in benefit management company New Century Health. Financial terms of the deal were not released. Water Street said that it will work to expand the company’s services to a broader base of payers and patients across the U.S.

Water Street Healthcare Partners, a strategic private equity firm focused exclusively on health care, announced today that it has made a majority investment in New Century Health. Founded in 2002, New Century Health is a specialty benefit management company focused primarily on oncology and cardiology. In a privately negotiated transaction, Water Street and its co-investors committed to expanding the company’s services to a broader base of payers, providers and patients across the United States.

New Century Health integrates and streamlines all outpatient components of care in the oncology and cardiology specialties. Through its proprietary technology platform, New Century connects health plans, physicians and patients to coordinate care and improve quality in a cost-effective fashion. In the past three years, New Century Health has grown its revenues more than 200 percent.

Joseph Perez, the founder and president of New Century Health, said: “Water Street’s team approached us with ideas on a strategic partnership to help us grow and scale our company. As our discussions progressed, it was clear that Water Street’s experience and track record in payer services was unparalleled. Water Street’s industry expertise and relationships with national and regional payers will enable us to achieve our vision of offering payers, specialists and patients comprehensive support on a national scale.”

New Century Health is Water Street’s fourth proprietary investment in outsourced payer services. It also owns:

* CareCentrix, Inc., the nation’s leading provider of home health care benefit management services;

* Access MediQuip, LLC, the nation’s first and largest provider of surgical implant device management solutions; and

* HealthPlan Holdings, Inc., a leading outsourcing solution to insurers in the individual, small business, union trust and voluntary benefits markets.

“The leaders in health care will be companies that develop solutions to improve quality and patient outcomes in a cost-effective manner. Over the past five years, Water Street’s team has executed a disciplined approach to identify the most attractive opportunities to accomplish these objectives,” said Ned Villers, a partner with Water Street. “New Century has already proven its ability to bring tangible value to its customers. In partnership with Joseph, we will invest our expertise and resources to expand New Century’s success on a national level.”

Water Street currently owns 12 companies in the following health care sectors: medical and diagnostic products, specialty distribution, life sciences and specialty health care services.

Financial terms about the transaction are not being disclosed.

About Water Street Healthcare Partners
Water Street Healthcare Partners is a strategic private equity firm focused exclusively on health care. The firm has a strong record of building market-leading companies across key growth sectors in health care. It has partnered with some of the world’s leading health care companies on its investments including Johnson & Johnson, Medtronic and Smith & Nephew. Water Street’s team is comprised of industry executives and private equity professionals with decades of experience investing in and operating global health care businesses. The firm is headquartered in Chicago. For more information about Water Street, visit www.wshp.com.