Newlight Partners makes significant equity investment in Zing Health

Private investment firm Newlight Partners (Newlight) has made a significant equity investment in Zing Health Holdings, a physician-led Medicare Advantage HMO plan designed for Medicare-eligible beneficiaries.

Founded in 2019 and headquartered in Chicago, Zing Health has a distinctive focus on populations underserved by traditional health insurance models. Its approach is based on a patient-oriented delivery system consisting of primary care providers, registered nurses, social workers, behavioural health specialists and community-based health care workers across a growing network of providers.

 
Zing Health was cofounded and is led by Dr Eric Whitaker, a seasoned physician and entrepreneur. He is supported by a management team with extensive experience in the health insurance industry. Health 2047, the innovation lab of the American Medical Association, is a cofounder of Zing Health.
 
“We are fortunate to partner with Newlight Partners as we enter the next chapter of growth and continue to increase membership in our plan,” says Dr Whitaker. “Newlight shares our goal of building a focused and differentiated health insurance company aligned with the fundamental trends that are transforming the healthcare ecosystem. We are eager to leverage Newlight’s resources and expertise to increase scale, enhance our integrated service offerings for our members and position Zing Health to benefit from the industry’s secular shift toward value-based managed care that delivers for members, patients and doctors.”
 
Medicare Advantage is a large, growing and increasingly popular option for many ageing Americans. These plans, which rely on value-based arrangements with private insurers, cover most Medicare services and provide beneficiaries with coverage for things that aren't covered by traditional Medicare, such as vision, hearing, dental and other services that promote health and wellness.
 
“Zing Health is a doctor-founded, mission-driven health plan focused on serving vulnerable populations who rely heavily on Medicare. Amid the current COVID-19 pandemic environment, where seniors find themselves most at risk, Zing Health’s mission is more important than ever,” says Srdjan Vukovic, partner at Newlight. “We anticipate investing up to USD150 million and we look forward to partnering with Eric and his experienced team to further the reach of Zing Health at this critical time.”
 
Willkie Farr & Gallagher LLP served as legal counsel to Newlight Partners. Perkins Coie LLP served as legal counsel to Zing Health.