CareMax, Inc. to Acquire Medicare Value-Based Care Business of Steward Health
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Transaction to expand CareMax’s comprehensive and coordinated healthcare delivery system designed to improve overall health outcomes for senior value-based care patients
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Brings CareMax’s high-quality, whole person healthcare to underserved communities with a focus on patients’ social determinants of health to promote health equity
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Initially adds approximately 170,000 senior value-based care patients across eight states
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Transaction projected to be immediately accretive to revenue and Adjusted EBITDA following close
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Management to hold conference call to discuss transaction at 8:00am ET on June 1, 2022
MIAMI, June 01, 2022–(BUSINESS WIRE)–CareMax, Inc. (NASDAQ: CMAX) (“CareMax” or the “Company”), a leading technology-enabled provider of value-based care to seniors, and Steward Health Care System (“Steward”), the parent of one of the nation’s largest accountable care organizations (“ACOs”) with more than 6,600 providers and 43,000 healthcare professionals, today announced a definitive merger agreement pursuant to which CareMax will acquire the Medicare value-based care business of Steward for a combination of cash and stock.
Upon closing the transaction, CareMax will serve as the exclusive value-based management services organization (“MSO”) across Steward’s Medicare network. Steward’s value-based care network of approximately 170,000 patients includes 50,000 Medicare Advantage patients, 112,000 Medicare Shared Savings Program (“MSSP”) patients and 9,000 Direct Contracting (“DCE”) patients. In addition, Steward and its affiliated practices service approximately 387,000 Medicare Advantage Fee for Service patients and 482,000 Traditional Medicare Fee for Service beneficiaries. Following the transaction, CareMax’s network will expand to approximately 2,000 providers and reach over 200,000 senior value-based care patients across 30 markets.
CareMax’s focus on whole person health through a unique blend of targeted technology and comprehensive, high-touch care has resulted in improved clinical outcomes compared to peers and traditional Medicare benchmarks. CareMax has achieved a Five-Star quality rating, the highest possible rating, across its locations overall. Similarly, since the launch of its 2012 Medicare Pioneer ACO, Steward has consistently ranked as one of the top performing ACOs in the country. Most recently, Steward delivered top performance in the 2020 MSSP and was the largest MSSP ACO in the nation. In addition, Steward received a 100% quality rating and achieved the second highest total cost savings amongst the roughly 500 ACOs in the program.
CareMax will bring its industry leading, technology-enabled, value-based care platform, which is comprised of proprietary technology, payor relationships, best practices, practice transformation workflows, risk adjustment and quality coordination services to Steward’s expansive senior patient base. CareMax plans to offer convenient and sophisticated products as well as physical locations in Steward’s markets. These locations are anticipated to resemble CareMax’s current de novo model, which include primary care physicians, specialists in high demand, such as…
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