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Paladina Health acquires Activate Healthcare, creating large provider of value-based care

The collaboration results in a value-based primary care provider that serves more than 170,000 patients in 18 states.

Jeff Lagasse, Associate Editor

Paladina corporate headquarters in Denver, CO (Google Earth)Paladina corporate headquarters in Denver, CO (Google Earth)

Paladina Health, a direct primary care services company based in Denver, has acquired Indiana-based Activate Healthcare, a provider offering customized services to employers and unions for preventive and primary medical care.

The collaboration creates one of the largest providers of value-based primary care across the U.S., serving more than 170,000 patients in 18 states. Financial terms of the deal were not disclosed.

IMPACT

With a growing focus in the marketplace on alternative care delivery models that are patient-centric and value-based, Activate Healthcare has been cited as one of the faster-growing organization-based primary care providers.

The company was recognized by KLAS Research in their 2018 Worksite Health Service report as the top performer for three important measures, including overall performance, quality of staff and strategic expertise.

In 2018, meanwhile, Paladina Health announced its acquisition by New Enterprise Associates, as well as a follow-on financing round from NEA, Oak HC/FT, Alta Partners, Greenspring Associates and other strategic investors.

Paladina Health exceeded the 90th percentile for the Healthcare Effectiveness Data and Information Set commercial PPO benchmarks in hypertension management and colorectal cancer screening.

THEIR TAKE

"This partnership underscores the need for innovation and change to improve the health and well-being of Americans while realizing medical cost savings for employers and unions within the healthcare delivery system," said Paladina Health CEO Chris Miller.

THE TREND

Mergers and acquisitions have been a common occurrence in healthcare for years now, and of late, mega-mergers have become the norm -- giant organizations that join forces, often in an attempt to leverage their newfound scale and keep dollars flowing in.

The problem is that these mega-mergers often don't deliver on their promises. Organizations want more negotiating power when hashing out contracts with insurance companies, and they rarely get it. Credit ratings are being downgraded. Costs often rise, quality deteriorates, and some companies want out of these deals altogether six or seven years down the road.

Twitter: @JELagasse

Email the writer: jeff.lagasse@himssmedia.com

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