Water Street to Divest Premise Health
Direct health care company Premise Health today announced global investment firm OMERS will become its new lead investor beginning in mid-July, following four years of partnership with Water Street Healthcare Partners.
For Premise Health, which partners with organizations to address the health needs of their employee and dependent populations, this announcement marks the next step forward as it grows to meet demand for greater health care access, according to Premise CEO Stu Clark.
“Over the last four years, we have significantly expanded and evolved our model to deliver unrivaled access to high-quality care, offering a seamless member experience and exceptional value,” Clark said. “Now, we are poised to continue that progress with support and capital from a global partner known for its long-term investment approach, which aligns perfectly with our vision and commitment to our clients, members and their families.”
Water Street and Premise worked together closely to select OMERS as the company’s new investment partner, and Premise’s executive team will continue to lead the company, Clark added.
Ned Villers, partner, Water Street, commented, “When we partnered with Walgreens and the management team to create Premise Health, our vision was to transform Premise into the national leader in employer health care. We are proud of the tremendous value that Premise Health brings to the health care system today and believe that the company is ideally positioned to continue its strong growth in the future.”
OMERS is one of Canada’s largest defined benefit pension plans, with more than $95 billion in net assets, as of December 31, 2017. Other examples of OMERS Private Equity’s healthcare investments include dermatology provider Forefront Dermatology, dental services provider Great Expressions, outpatient physical therapy and home health provider CBI Health Group, and outpatient rehabilitation services provider Accelerated Rehabilitation Centers.
“Our approach to investment is a patient one, with a focus on growing businesses by providing long-term capital and supporting management,” said Tim Patterson, OMERS managing director. “We’re pleased to partner with Premise Health to pioneer new solutions to enhance health care experiences, while lowering the overall cost.”
Rising health care costs remain a challenge for many organizations. Average annual employer contributions to premiums for family coverage increased 48 percent between 2007 and 2017, from $8,824 to $13,049 per family, according to the Kaiser Family Foundation 2017 Employer Health Benefits Report.
Patterson added that together, Premise and OMERS have “a tremendous opportunity to offer organizations a different approach to health care and make a difference for millions of people.”
Harris Williams & Co. acted as the merger and acquisition advisor to Premise Health for this transaction.
ABOUT PREMISE HEALTH
Premise Health is the leading direct healthcare company pioneering new models to deliver powerfully effortless healthcare. With more than 50 years of experience, Premise Health delivers unmatched quality, access and value through more than 600 health and wellness centers in 44 states, Guam and Puerto Rico. The company serves more than 275 of the nation’s most innovative organizations, including a significant number of Fortune 1000 companies.
Premise Health believes that the future of healthcare is unrivaled access to phenomenal care that costs less for clients, members and their dependents. It delivers that future today through three access points – onsite health, nearsite health, and 24/7 virtual health. It also serves as the healthcare gateway for members and dependents, connecting them not only to its own robust and comprehensive provider network but also to the broader healthcare ecosystem. The result is a member experience that makes it easy to be seen anytime and anywhere.
For more information on Premise Health, visit www.premisehealth.com.