Private Equity Firm Recruits Industry Leaders to Spearhead and Expand Home Health Care Services Business CHICAGO, Sept. 25
CHICAGO, Sept. 25 /PRNewswire/ -- Water Street Healthcare Partners, a
leading private equity firm focused exclusively on the health care industry,
announced today that it has completed its agreement with Gentiva Health
Services, Inc. (Nasdaq: GTIV) to acquire a controlling interest in
CareCentrix. The firm also announced that it has recruited Eric Reimer to
serve as chief executive officer of CareCentrix, and Steve Shulman and Steve
Cosler to join the board of directors. Together, they will focus on
repositioning and expanding CareCentrix, the nation's largest coordinator of
home health care services for managed care organizations.
Eric Reimer, 39, most recently led strategic development for Magellan
Health Services, Inc. (Nasdaq: MGLN). He spearheaded the company's
acquisition of National Imaging Associates, where he assumed the CEO position
and transformed the $50 million business into a full-service radiology
benefits management firm, generating $300 million in annualized revenue. Mr.
Reimer also was instrumental in Magellan's acquisition of ICORE Healthcare, a
specialty pharmaceutical business. During his five years with Magellan, Mr.
Reimer managed and collaborated with the nation's largest health care plans.
Prior to Magellan, Mr. Reimer held executive positions with CIGNA Health
Services and Prudential Healthcare. He also worked with Boston Consulting
Group, after receiving his master's degree in business administration from the
Wharton School of the University of Pennsylvania.
"Water Street has focused on finding platforms in specialty benefits
management since we identified payer services as an attractive investment
segment three years ago," said Ned Villers, a partner with Water Street and
leader of the firm's payer services initiative. "During this time, we've met
with many impressive executives, but Eric stands out as an exceptional leader
and the perfect fit for CareCentrix. His direct experience, strategic insight
and strong track record of building market-leadership companies make him the
ideal CEO for CareCentrix. We are confident that Eric will help the company
execute the many growth opportunities that exist in home health care."
Established in 1996, CareCentrix manages home nursing, infusion and
medical equipment services for more than 10 million people across the country
through a network of 4,000 credentialed home care providers. With the average
cost of a home health care visit substantially less than the daily cost of
care received in a hospital or skilled nursing facility, home health care has
the potential to save patients and payers millions of dollars on an annual
basis. The multi-billion dollar industry is projected to experience
significant growth over the next 10 years, as U.S. demographics continue to
shift to an older population and pressure to reduce health care costs
intensifies.
"I am very excited to join CareCentrix at this important point in the
company's and industry's evolution," said Reimer. "The CareCentrix team has
done an outstanding job of building the nation's most comprehensive home
health care management program. The company is now ideally positioned to
support managed care organizations that are increasingly searching for new
ways to manage costs. Our intention is to build on CareCentrix's strong
foundation to transform it into a strategic leader that is proactively helping
payers reduce their overall medical spend and achieve better patient
outcomes."
Steve Shulman and Steve Cosler Join Board of Directors
To support CareCentrix's plans for expansion, Water Street has recruited
Steve Shulman and Steve Cosler to serve on the board of directors.
A highly regarded leader in the health care industry, Mr. Shulman is
perhaps best known for leading Magellan's successful turnaround from
bankruptcy to the nation's foremost specialty health care management company.
He also led Prudential Healthcare through a major transformation, culminating
in its sale to Aetna, while serving as the company's chairman, president and
CEO. Joining Mr. Shulman on the board is Steve Cosler, who is an operating
partner with Water Street and the former CEO of Priority Healthcare, a leading
specialty pharmacy company. Executives from Gentiva Health Services and Water
Street also will serve on the board.
"We have assembled an exceptional group of leaders with unparalleled
expertise in payer services to serve on the board of CareCentrix," said
Villers. "Their collective experience and industry network will be invaluable
to CareCentrix's management team, as we expand the company's value proposition
and pursue new relationships with the nation's largest payers."
About CareCentrix
CareCentrix is the nation's largest coordinator of home health care
services for managed care organizations. The company manages home nursing,
infusion and medical equipment services for more than 10 million members of
managed care organizations across the country through a network of 4,000
credentialed home care providers. Established in 1996, CareCentrix is
headquartered in Hartford, Connecticut. For more information about
CareCentrix, visit http://www.carecentrix.com.
About Water Street Healthcare Partners
Water Street Healthcare Partners is a leading private equity firm focused
exclusively on health care. With more than $1 billion of capital under
management, Water Street is one of the most active investors in the health
care industry. The firm has a strong track record of building
market-leadership companies across key growth sectors in health care. It has
partnered with some of the world's leading health care companies on its
investments, including: Johnson & Johnson, Medtronic and Smith & Nephew.
Water Street's team is comprised of industry executives and private equity
professionals with decades of experience investing in and operating global
health care businesses. The firm is headquartered in Chicago. For more
information about Water Street, visit http://www.wshp.com.
SOURCE Water Street Healthcare Partners
