SENIOR WHOLE HEALTH RECEIVES SIGNIFICANT EQUITY INVESTMENT TO FUEL EXPANSION
CAMBRIDGE, Mass. – January 4, 2007 – Senior Whole Health, a leading health care plan founded in 2003 that provides intensive, integrated case management services to seniors 65 and older, announced a Series B $16M financing led by Flexpoint Partners, Chicago, IL with participation by Council Ventures, Nashville TN; New Capital Partners, Birmingham AL; Noro- Moseley, Atlanta GA; and SSM Partners, Memphis TN. Senior Whole Health (SWH) is utilizing the proceeds to fund the company’s expansion into new markets, modeling its programs on the successful implementation of Special Needs Plans (SNPs) to Medicare/Medicaid dual eligible and Part D beneficiaries in Massachusetts. Currently, SWH is enrolling qualified individuals in MA, New York and Connecticut.
SWH serves people who qualify for both Medicare and Medicaid, two very comprehensive government-sponsored plans that pay claims for services to “dual eligibles.” However, there is no management of the care and limited coordination between the two programs and Medicare Part D. The result is skyrocketing costs for the Federal Government to treat adverse events and to fund end-of-life care for duals in expensive nursing homes.
SWH has developed a model that integrates all benefits into one plan and is far more efficient. A nurse case manager and a support staff of community resource coordinators manage care, advocate for patients, and direct each individual’s medical and social services with providers. This approach has proven to generate better outcomes, allowing SWH members to live independently at home, enjoy a better quality of life, and use fewer resources than care in a nursing home. Wide receptivity to this approach in MA and demand for services has validated the model, giving SWH the experience and track record to anticipate successful implementation in additional markets and drive significant revenues.
“The key to our success is effective case management, with a goal to keep members who are independent or living with others at home and out of nursing homes,” says John Baackes, Chief Executive Officer. “This financing will support current growth as well as anticipated expansion in markets where federal and state government officials are struggling to meet the profound health care needs of seniors who face the reality of aging with limited resources. Our investors are committed to help resolve these pressing issues which impact not only the patients, but also every American citizen.”
Baackes points out that the wave of baby boomers entering the system will only increase overall costs, positioning SWH as a socially committed organization that can generate better health for members combined with solid financial results for the company. SWH emerges as the gold standard for addressing the current fragmentation of care delivery systems, with one entity streamlining the coordination of all facets of well being – clinical functional, psychological and long term. By establishing positive relationships with medical providers in each state and a focus on patient-centered care, SWH offers a leading example of how managed care is intended to work.
According to Kathleen Bennett, M.D., Medical Director of SWH, “An important component of the program is identification of members at high risk through comprehensive assessments and an individual care plan tailored to each participant. These evaluations allow for appropriate care and dedication of resources that lead to healthier outcomes. Our approach is both strategic and compassionate, improving access to care for people who were always at the end of the line and moving them to a better place.”
Commenting on the investment, Charles Glew, Principal, Flexpoint Partners says, “This robust model and its achievements to date document our collective confidence in Senior Whole Health to address the health care issues of low-income seniors with sensitivity and compassion. What is so compelling about SWH is that the company has been able to accomplish these goals with such stellar financial performance. Going forward, we have great confidence that the talented management team will replicate this success.”
James Outland, Managing Partner, New Capital Partners says that the timing of this expansion is ideal, with both public and private sectors recognizing the vital role of SWH to resolve fiduciary and health care challenges.
“Our growth strategy is well-grounded, bring viable solutions to genuine problems and with continued sensitivity to the needs of real human beings. It is gratifying to be a part of this socially-responsible company that is meeting investor expectations for healthy returns,” says Outland.
About Senior Whole Health
Founded in 2003 and headquartered in Cambridge, MA, Senior Whole Health is a privately-held company offering intensive, integrated case management services for Medicare/Medicaid dual eligibles and Medicare Part D. Senior Whole Health’s Special Needs Plans (SNPs) plans are designed for people who are 65 or older and live in the Senior Whole Health service areas. SNPs serve the chronically ill, the institutionalized and Medicare/Medicaid dual eligibles. Visit www.seniorwholehealth.com or call 1.888.749.7268.
CPR for Senior Whole Health
Ihor Andruch
201-641-1911 x50
iandruch@cpronline.com