DaVita sells its primary care clinics
DaVita Inc. has sold off its primary care business to global venture capital firm New Enterprise Associates, according to a release from Paladina Health.
DaVita created Paladina Health as part of its interest in owning and managing physician practice groups in primary care.
“We are bullish on Paladina's future and thrilled that New Enterprise Associates [NEA] will be their new home,” Kent Thiry, DaVita chairman and CEO, said.
Paladina operates under a management model that bypasses negotiations with insurers. It sells health plans directly to employers who then pay a monthly fee for employees. The fees vary depending on the size and health of the patients.
“We’ve closely followed the ongoing shift to value-based care in the U.S. and believe that Paladina Health is a pioneer in the space,” Mohamad Makhzoumi, general partner and head of Healthcare Services and Healthcare IT Investing at NEA, said in the release. “Driven by a stellar management team, the company’s adaptive DPC model has proven to meet the growing needs of patients by delivering excellent care that not only results in high patient and provider satisfaction, but also drives down cost. We’re thrilled to partner with Paladina Health as they accelerate growth and continue to pioneer a better health care solution."
Paladina Health operates more than 50 physician offices in Colorado, Washington, Texas, Wisconsin, Ohio, North Carolina, South Carolina, Kentucky, New Jersey and Florida.