IVX Health, National Provider Of Outpatient Infusion Centers, Secures $100 Million Growth Investment To Accelerate New Market Expansion

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IVX Health, a national provider of outpatient infusion centers, announcedt the completion of a $100 million Series F minority investment from Great Hill Partners, a private equity firm that invests in high-growth, disruptive companies.

Great Hill joins IVX Health’s existing investors including Linden Structured Capital, McKesson Ventures, Health Velocity Capital, and Nueterra Capital.

IVX Health offers an alternative to hospital-based infusion and injection services, transforming the patient experience by providing a superior level of service in a cost-effective, convenient site of care. Its local centers offer guaranteed private suites, large flat screen TVs, high-speed Wi-Fi, leather recliners with chairs for guests, and flexible, on-demand scheduling, including evening and weekend appointments.

Operating over 50 infusion centers across 16 markets, IVX Health will immediately utilize the funding to accelerate entry into new markets in 2022 and beyond as it seeks to fulfill its vision of becoming the nation’s preferred destination of pharmaceutical care for patients with complex chronic conditions such as multiple sclerosis, Crohn’s disease, and rheumatoid arthritis, among others.

“Our primary goal has always been to provide world-class service and clinical excellence to the patients we serve,” said Doug Ghertner, CEO of IVX Health. “IVX and Great Hill both see an inflection point in infusion therapy, as the growth in diagnosed autoimmune conditions and trends toward patient choice have aligned with an uptick in innovative new therapies. Many patients are unfortunately still left with few options for receiving this life-changing care, often within a crowded infusion room of a hospital – and that’s where we come in. We are confident that Great Hill’s investment and deep domain expertise will help us address this shortage of care options by enabling IVX to bring our unique clinical model and patient-centered amenities to an even broader universe of patients.”

“IVX Health is disrupting a distinct and rapidly growing healthcare vertical – biologic infusion and injection therapy – in unique ways that are driving tangible efficiencies for the U.S. healthcare system as a whole,” said Mark Taber, a Managing Director at Great Hill Partners. “We are excited to play a strategic, supporting role in fueling IVX Health’s next phase of growth as it enters new markets and collaborates with other providers in the healthcare ecosystem to drive value while continuing to redefine the care experience for its patients and referring providers.”

In connection with the investment, Taber will join IVX Health’s Board of Directors. Taber brings decades of executive healthcare experience from his time as Managing Director at Great Hill and as a board member of various portfolio companies.

In addition to IVX Health, Great Hill’s portfolio of healthcare companies includes: RxBenefits, Quantum Health, Labor First, ParetoHealth, and Vatica Health. The announcement deepens Great Hill’s experience partnering with innovative healthcare companies to help them pursue their full potential, which includes the recently-sold company, PartsSource, a leading provider of medical parts and supplies procurement solutions for hospitals, outpatient clinics, and physician offices.

IVX Health’s capital raise builds on what has already been a banner year for the company, as it has achieved record milestones for opening new centers, caring for new patients, and entering new states. IVX Health was also named to the prestigious Modern Healthcare Best Places to Work list for a third consecutive year. The organization continues to maintain an industry-leading 97 Net Promoter Score from its patient population.

Evercore served as financial advisor to IVX Health and TripleTree, LLC served as financial advisor to Great Hill.

About IVX Health

IVX Health is a national provider of infusion and injection therapy for those with complex chronic conditions such as rheumatoid arthritis, Crohn’s disease, multiple sclerosis and other conditions.

IVX Health’s national footprint of outpatient infusion centers are conveniently located in the communities where patients live and work. IVX Health’s experience-first model includes amenities such as flexible appointment scheduling with evening and weekend availability, guaranteed private suites, high-speed Wi-Fi, flat screen TVs with streaming TV and movies, and comfortable recliners with room for guests. For more information on IVX Health and its existing locations, visit www.ivxhealth.com.

About Great Hill Partners

Great Hill Partners is a Boston-based private equity firm targeting investments of $25 million to $500 million in high-growth companies across the software, digital commerce, financial technology, healthcare, and digital infrastructure sectors. Over the past two decades, Great Hill has raised nearly $8 billion of commitments and invested in more than 75 companies, establishing an extensive track record of building long-term partnerships with entrepreneurs and providing flexible resources to help middle-market companies scale. For more information, including a list of all Great Hill investments, visit www.greathillpartners.com.

 

Source: businesswire

KKR Forms JV To Target $1B In Healthcare Real Estate

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Global investment firm KKR has formed a joint venture with Cornerstone Companies, a healthcare real estate investment, development and management firm, to acquire and develop a portfolio of healthcare properties across the United States.

KKR and Cornerstone have seeded the portfolio with the recapitalization of 25 healthcare properties owned by Cornerstone. With funding commitments provided by KKR’s real estate and credit funds and Cornerstone, the Joint Venture is positioned to acquire more than $1 billion in real estate assets over the next few years.

The portfolio recapitalized by KKR and Cornerstone includes 713,705 square feet of medical office buildings and ambulatory surgery centers located across 12 states, with in place long-term leases to a high quality group of healthcare systems, physician group practices and surgery center operators. Cornerstone and KKR will work together to grow the portfolio through acquisitions and net lease development opportunities, with a focus primarily on long-term leased single-tenant medical office buildings, ambulatory surgery centers and facility-based outpatient healthcare assets.

“KKR is one of the world’s largest investment firms with incredible connectivity across industries, including deep experience investing in the healthcare and real estate sectors,” said Tag Birge, President and CEO of Cornerstone. “This strategic partnership significantly increases our reach and capacity to deliver investment and development solutions for leading physician groups and health systems. We are very excited to work with a partner in KKR who shares our commitment to lasting client relationships and strong focus on portfolio construction and underwriting.”

“We are pleased to collaborate with the highly-regarded team of industry specialists at Cornerstone to invest in a scaled portfolio of healthcare properties,” said Peter Sundheim, Director at KKR. “The recapitalization of 25 well-situated seed assets creates a strong foundation for our Joint Venture.”

“We will contribute capabilities from across KKR’s real estate, credit and healthcare industry teams to support sourcing and underwriting of assets for the Joint Venture,” said Michelle Hour, Director at KKR. “As investors in the healthcare sector for more than two decades, our relationships and understanding of the needs of tenants will help us to provide attractive ownership for their mission-critical real estate.”

Additional financial terms of the Joint Venture and recapitalization transaction were not disclosed.

Newmark’s Healthcare Capital Markets Group advised Cornerstone and KKR on establishing the Joint Venture, represented Cornerstone on the portfolio recapitalization transaction, and provided advice to KKR on debt financing. CBRE’s Healthcare and Life Sciences Capital Markets Group provided buyside advisory services to KKR on the portfolio recapitalization transaction. Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.

 

Source: Real Estate Weekly

HCA Healthcare And Brookdale Senior Living Sell Off Large Chunk Of Home Health Joint Venture

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A little more than two months after closing a $400 million deal to purchase a majority stake in Brookdale Health Care Services, HCA Healthcare Inc. is selling off a large chunk of its new joint venture.

Home health care provider LHC Group has agreed to purchase 23 home health locations, 11 hospice and 13 outpatient therapy agencies across 22 states from the HCA and Brookdale Senior Living joint venture, according to a news release. Terms of the deal, which is expected to close in the fourth quarter, were not disclosed.

HCA officially completed its purchase of a majority stake in BHS — Brookdale’s home health, hospice and outpatient therapy business — in July at a price tag of $400 million.

The deal implied a $500 million value for BHS, enabling Brookdale to retain a 20% stake in the division. At the time, BHS operated 57 home health agencies, 22 hospice agencies and 84 outpatient therapy locations across 26 states, providing care at Brookdale facilities and inside patients’ homes.

The facilities that are being sold to LHC Group are not in HCA markets, according to the release. HCA (NYSE: HCA) is Nashville’s largest publicly traded company and the nation’s biggest hospital operator, with $51.5 billion of revenue in 2020. The company operates 185 hospitals across 20 states.

“In July, HCA Healthcare purchased a majority stake in Brookdale Health Care Services to expand access to healthcare services for our patients,” HCA CEO Sam Hazen said in the release. “We believe the sale to LHC Group of these sites of care, which were part of that transaction and are not in communities we currently serve, positions them for continued success.”

Brookdale is the nation’s largest senior-living community operator, with 737 facilities in 44 states. The company reported $3.5 billion of revenue in 2020, making it one of Nashville’s largest publicly traded health care companies, according to Nashville Business Journal research.

Brookdale received $300 million upfront as part of its joint venture deal with HCA, strengthening the Brentwood-based company’s liquidity and creating value for shareholders.

The sale of a large portion of BHS to LHC Group brings more liquidity to Brookdale, according to the release.

“We are looking forward to working with LHC Group, another national provider of healthcare services,” Brookdale CEO Cindy Baier said in the release. “This transaction will further strengthen our liquidity, maintain our 20% interest in the venture with HCA Healthcare, and ensure that high-quality home health and hospice services continue to be available to our residents at communities in these markets. I’m pleased that Brookdale’s residents will benefit from a seamless offering of services across our broad care continuum.”

 

Source: Nashville Biz Journal