Specialist health care private equity firm Water Street Healthcare Partners has agreed with Gentiva Health Services to acquire a controlling interest in CareCentrix, the largest US co-ordi
Specialist health care private equity firm Water Street Healthcare Partners has agreed with Gentiva Health Services to acquire a controlling interest in CareCentrix, the largest US co-ordinator of home health care services for managed care organisations. It has also recruited Eric Reimer as chief executive of CareCentrix, and Steve Shulman and Steve Cosler to join the company’s board of directors.
Reimer most recently headed strategic development for Magellan Health Services and led its acquisition of National Imaging Associates, where he became chief executive and transformed the USD50m business into a full-service radiology benefits management firm with annual revenue of USD300m.
He was also instrumental in Magellan’s acquisition of specialty pharmaceutical business Icore Healthcare. Reimer previously held executive positions with Cigna Health Services and Prudential Healthcare, and worked with Boston Consulting Group.
‘Water Street has focused on finding platforms in specialty benefits management since we identified payer services as an attractive investment segment three years ago,’ says Ned Villers, a partner at Water Street and leader of the firm’s payer services initiative.
‘Eric stands out as the perfect fit for CareCentrix. His direct experience, strategic insight and strong track record of building market leadership companies make him the ideal chief executive for CareCentrix. We are confident he will help the company execute the many growth opportunities that exist in home health care.’
Established in 1996 with headquarters in Hartford, Connecticut, CareCentrix manages home nursing, infusion and medical equipment services for more than 10 million people across the US through a network of 4,000 home care providers. Water Street predicts that the multi-billion-dollar industry will experience significant growth over the next 10 years as US demographics continue to shift to an older population and pressure to reduce health care costs intensifies.
‘The CareCentrix team has done an outstanding job of building the nation’s most comprehensive home health care management programme,’ Reimer says. ‘The company is now ideally positioned to support managed care organisations that are increasingly searching for new ways to manage costs. Our intention is to build on CareCentrix’s strong foundation to transform it into a strategic leader that is proactively helping payers reduce their overall medical spend and achieve better patient outcomes.’
Shulman led Magellan’s turnaround from bankruptcy to become a leading health care management company. He also led Prudential Healthcare through a major transformation, culminating in its sale to Aetna, while serving as the company’s chairman, president and chief executive. He is joined on the CareCentrix board by Cosler, an operating partner at Water Street and the former chief executive of specialty pharmacy company Priority Healthcare. Executives from Gentiva and Water Street also will serve on the board.
Chicago-based Water Street Healthcare Partners is a private equity firm focused exclusively on health care, with more than USD1bn in capital under management. The firm has partnered on its investments with some of the world’s leading health care companies, including Johnson & Johnson, Medtronic and Smith & Nephew.
