ST. LOUIS (November 4, 2021)—Centene Corporation announced that it has signed a definitive agreement to sell a majority stake in U.S. Medical Management, LLC (USMM) to Rubicon Founders; Valtruis, a WCAS company; Oak HC/FT; and HLM Venture Partners. Centene will retain a minority stake in USMM.
"With more than 25 years of experience in home-based care, USMM has outperformed in numerous value-based care initiatives and consistently delivered lower costs, better health outcomes and higher patient satisfaction ratings," said Sarah London, vice chairman of Centene's board of directors. "We are confident this transaction will best position USMM to expand its reach and impact while helping Centene to deliver on our value creation plan. As part of our ongoing portfolio review, Centene intends to use the proceeds from the sale to repurchase stock, in a first step towards a material stock repurchase program."
USMM is a family of companies dedicated to providing high-quality, coordinated health care in the home. USMM has also developed and owns several allied health assets, which assist in the provision of home-based primary care and furthers the value and efficiency of house call medicine. USMM Accountable Care Partners (USMM ACP) launched as an accountable care organization in 2015, and today, is the only ACO focused solely on the frail, disabled or home-limited populations. Over the past five years, USMM ACP has demonstrated savings for its Medicare beneficiaries of $154 million.
"This is a unique opportunity to partner with one of the most important value-based healthcare companies in the country. Patients depend on USMM every day for medical care where it is needed most—in the convenience of their homes. I strongly believe in this mission and look forward to working closely with the team to make a significant difference in peoples' lives," said Adam Boehler, CEO of Rubicon Founders.
Evercore is serving as financial advisor to Centene, and Skadden, Arps, Slate, Meagher & Flom LLP and Locke Lord LLP are serving as its legal counsel. Ropes & Gray LLP is serving as legal counsel to WCAS.
The transaction is subject to clearance under the Hart-Scott Rodino Act and satisfaction of other customary closing conditions.
Visit centene.com for more information.
