Cimarron Healthcare Capital Announces Recapitalization of CareAccess MSO
Transaction Provides Capital to Support Next Phase of Growth for Premier Provider of Management Services to Independent Physicians
SALT LAKE CITY, Feb. 10, 2021 /PRNewswire/ -- Cimarron Healthcare Capital ("Cimarron"), a private equity firm focused on making investments into healthcare companies in the lower-middle market, today announced that it has completed the acquisition of CareAccess MSO ("CareAccess" or "the Company") together in partnership with the Company's management team. CareAccess is a Management Services Organization ("MSO") that partners with primary care physician groups in support of establishing and managing value-based risk contracts with Medicare Advantage ("MA") plans. CareAccess also offers a comprehensive specialty network to its physician group partners in support of delivering quality care across all specialties of medicine. Financial terms of the private transaction were not disclosed.
CareAccess was founded by current CEO Tammy Le, a 20+ year executive in the southern California managed care industry, having spent time at several IPAs, Medicare managed care plans, and independent hospitals. The Company is headquartered in Los Angeles County, California, and manages dozens of physician groups / IPAs with Medicare, Medi-Cal, and Commercial lives.
"From my first meeting with Cimarron, it was clear that their understanding of managed care and their partnership orientation would help me accomplish the lofty goals I have for CareAccess MSO," said Tammy Le, Founder and Chief Executive Officer of CareAccess MSO. "I have already felt the positive impact of their highly relevant relationships and healthcare expertise, and I couldn't be more pleased with what this investment means for our company and our clients."
"We are thrilled to partner with Tammy and the broader CareAccess team to further advance this exciting growth story and are grateful she's entrusted Cimarron with this partnership," said James Nadauld, Managing Partner of Cimarron.
The investment will be used to support the tremendous growth of the Company in response to the significant demand from physician groups and health plans looking to promote quality patient care through effective partnerships and alignment.
"Tammy and her team have built a terrific business at the forefront of managed care," said Nick Smith, a Principal at Cimarron. "CareAccess' commitment to service delivery, combined with its broad network of industry relationships, provides tremendous support and opportunity to its physician partners to thrive in a value-based care environment."
The rising cost of healthcare is a top concern for the US healthcare system. Over the last several years, there has been a shift from the traditional fee-for-service (FFS) model to value-based or pay-for-performance payment models, driven largely by Medicare Advantage plans proactively moving covered lives into risk-based models. Value-based care aligns incentives of patients, providers, and payors to increase and maintain the health of patients in the most cost-efficient manner. The result is increased patient health and satisfaction, lower overall healthcare spending, and higher profitability, work-life balance, and satisfaction for physicians.
It can be challenging for smaller, independent physician practices to manage their businesses while also delivering quality patient care. CareAccess provides all the support physicians need to establish and manage risk-based arrangements, break away from the demanding fee-for-service environment, and participate in the value that is created by delivering exceptional patient care.
About Cimarron
Cimarron Healthcare Capital is a Salt Lake City-based private equity firm focused on healthcare investments in the lower middle-market. Cimarron's experienced investment team and industry domain expertise aligns its investment strategy with its portfolio companies' growth and expansion needs, creating an ecosystem designed to maximize value. For more information, please visit: www.cimarronhc.com.
PRESS CONTACT:
Clay Andrus
[email protected]
SOURCE Cimarron Healthcare Capital
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