QuadMed, LLC, and Novia CareClinics, LLC have entered into a definitive agreement whereby QuadMed will acquire all of Novia CareClinics operations and merge their executive management and operations teams accordingly.
The transaction will strengthen both companies' leadership positions in the healthcare markets they serve, enabling them to offer the best of their respective models to a wider range of employers who are seeking to improve access to quality healthcare while also reducing costs.
"This acquisition is a cultural and strategic fit that supports both companies' vision for growth," said Tim Dickman, president of QuadMed, a subsidiary of Quad/Graphics. "Novia's leadership in developing and managing onsite and shared primary care clinics for small to mid-size companies and the public sector complements QuadMed's successful model of ground-breaking healthcare management solutions for larger companies with a national presence."
"QuadMedshares our values and our philosophy of improving the quality of patient care while putting a strong focus on driving behavioral changes and controlling costs," said Eric Olson, president of Novia CareClinics. "We built our respective businesses independent of any competing interests that could have potentially detracted from our true purpose of keeping people healthy. Combining the strengths of our two companies will make an even more meaningful difference in today’s complex healthcare landscape."
The combined company will offer clients:
• An expanded U.S. geographic footprint that better meets the healthcare needs of multi-location companies locally, regionally or nationally;
• A broader range of services and best-in-class solutions tailored to specific employee-population needs, including chronic condition management, nutrition and wellness programming, and injury rehabilitation;
• A continuum of competitively priced healthcare solutions that includes standalone clinics for employers with large concentrations of employees at single sites, shared clinics for multiple employers with smaller concentrations of employees in a geography, and corporate health suites with telemedicine capabilities for employers with limited real estate, small employee populations and/or dispersed workforces.
"We started QuadMed more than 20 years ago to improve our company's access to quality, cost-effective healthcare – a bold move that transformed us from a purchaser of health insurance to an investor in employee health and productivity," said Joel Quadracci, chairman, president and CEO of Quad/Graphics. "Because the QuadMed model was created by an employer, it addresses employers' needs for healthcare solutions that promote healthy living and disease prevention, and improve outcomes while reducing costs. Now, with our investment in Novia CareClinics, we can build on QuadMed's successful model. As a large employer with nearly 20,000 employees in 28 states, we can partner with other employers to create shared clinics, and continue to pass on what we’ve learned during our healthcare management journey."
Quadracci emphasized that the acquisition is expected to create value for Quad/Graphics.
"This investment will help us, as the parent company, better manage healthcare costs across our entire network of facilities, both large and small,” he said. “In addition, the acquisition fits with QuadMed's strategy to grow the breadth and depth of its healthcare management solutions at a transformative time in the healthcare industry. Together with Novia CareClinics' expertise in shared clinics, small- to medium-sized companies and the public sector, our QuadMed subsidiary will have a much broader offering, which will strengthen our competitive position and fuel the growth of this segment of our business."
Together, QuadMed and Novia CareClinics will operate more than 90 clinic locations across 18 U.S. states and serve the needs of more than 150,000 patients. The combined company will maintain existing administrative support offices in Wisconsin as well as Indianapolis where Novia CareClinics is headquartered.
Once the acquisition is complete, Dickman will continue to serve as president of QuadMed, and Olson will join QuadMed as a member of the executive management team. Other key Novia CareClinics management team members will be fully integrated into the combined company’s operations.
The transaction is expected to close in approximately 30 days.