Equality Health, a provider of technology, services and support for value-based care, has secured a strategic investment from General Atlantic, a leading global growth equity firm, to fuel the Company’s next phase of growth as a value-based primary care network serving the Medicaid, Medicare and ACA Exchange populations.
Existing investor Endeavour Capital will remain a minority shareholder, and Town Hall Ventures will also invest in the Company. As part of the transaction, Equality Health will acquire Phoenix-based consulting firm Daraja Services and plans to integrate the firm’s suite of healthcare economics, technology and actuarial capabilities.
Equality Health was founded in Phoenix, Arizona in 2015 by CEO Hugh Lytle with the mission of improving access to culturally competent and holistic care for the Medicaid market, a population traditionally underserved by the US healthcare system. Through its supplemental care management services and proprietary technology platform, CareEmpower™, the Company enables payors and providers to deliver a leading patient experience, while lowering the cost of care and improving member outcomes. Today, Equality Health networks represent more than 1,600 primary care providers across six metropolitan service areas in three states.
Over the past five years, the Company has rapidly expanded its physician base and geographic reach in Arizona, California and Texas, supporting care for over 300,000 beneficiaries via partnerships with more than 20 managed care sponsors. Equality Health will leverage the partnership with General Atlantic to pursue further geographic expansion, technological innovation and product development in the near term, while also augmenting its actuarial and data analytics capabilities through the acquisition of Daraja Services.
Hugh Lytle, Founder and CEO of Equality Health, says: “Equality Health believes that high-quality, value-based care should be accessible to all individuals, families and communities across the US. We believe we can significantly accelerate this mission through our partnership with General Atlantic, leveraging the firm’s demonstrated experience in helping value-based care models scale. We are excited by the opportunity to further our momentum in transforming the space by leveraging technology to change behaviours, improve outcomes and increase affordability.”
“Equality Health is bringing much-needed technology innovation and care to the managed Medicaid sector,” says Robbert Vorhoff, Managing Director and Global Head of Healthcare at General Atlantic. “As the Medicaid market continues to expand and shift toward managed care, we believe the company is positioned for substantial growth. Hugh and the Equality Health team have built a compelling model that delivers greater value to payors, providers and patients, and we’re proud to support their vision.”
JP Morgan acted as financial advisor to Equality Health. Perkins Coie LLP and Squire Patton Boggs acted as legal counsel. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to General Atlantic. Additional terms of the deal have not been disclosed.
Source: Private Equity Wire