Centene Corporation (NYSE : CNC) has signed a definitive agreement for the sale of a majority stake U.S. Medical Management, LLC to Rubicon Founders, Valtruis, a WCAS business; Oak HC/FT and HLM Venture Partners. Centene will keep a minority share in USMM.
“USMM, with more than 25 years’ experience in home-based healthcare, has consistently delivered lower costs and better outcomes for patients,” stated Sarah London, Vice Chairman of Centene’s Board of Directors. We are confident that this transaction will position USMM to grow its reach and impact, while also helping Centene achieve our value creation goals. Centene plans to use the proceeds of the sale to repurchase stock as part of its ongoing portfolio review. This is the first step towards a material stock purchase program.
USMM is a group of companies that provides high-quality, coordinated home healthcare. USMM also owns and developed a number of allied health assets that support home-based primary healthcare and increase the efficiency and value of housecall medicine. USMM Accountable Care Partners (USMM ACP), which was established in 2015 as an Accountable Care Organization, is the only ACO that focuses exclusively on home-limited, frail and disabled populations. USMM ACP has saved $154 million over the five-year period for its Medicare beneficiaries.
This is an opportunity to partner up with one of the best value-based healthcare businesses in the country. Every day, USMM patients rely on USMM for medical care in their own homes. “I strongly believe in this mission, and I look forward to working with the team to make a substantial difference in peoples lives,” stated Adam Boehler CEO of Rubicon Founders and former Director of CMMI and founder of Landmark Health.
Centene’s financial advisor is Evercore, while Skadden Arps Slate Meagher & Flom LLP, Locke Lord LLP, and Skadden Arps Slate Meagher & Flom LLP are its legal counsel. WCAS is represented by Ropes & Gray LLP.
Clearance must be obtained under Hart-Scott Rodino Act, and other customary closing conditions must be satisfied.
