BRENTWOOD, Tenn- Direct health care company Premise Health today announced global investment firm OMERS will become its new lead investor beginning in mid-July, following four years of partnership with Water Street Healthcare Partners. OMERS Private Equity is the private equity investment arm of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada.
For Premise Health, which partners with organizations to address the health needs of their employee and dependent populations, this announcement marks the next step forward as it grows to meet demand for greater health care access, according to Premise CEO Stu Clark.
“Over the last four years, we have significantly expanded and evolved our model to deliver unrivaled access to high-quality care, offering a seamless member experience and exceptional value,” Clark said. “Now, we are poised to continue that progress with support and capital from a global partner known for its long-term investment approach, which aligns perfectly with our vision and commitment to our clients, members and their families.”
Water Street and Premise worked together closely to select OMERS as the company’s new investment partner, and Premise’s executive team will continue to lead the company, Clark added.
Ned Villers, partner, Water Street, commented, “When we partnered with Walgreens and the management team to create Premise Health, our vision was to transform Premise into the national leader in employer health care. We are proud of the tremendous value that Premise Health brings to the health care system today and believe that the company is ideally positioned to continue its strong growth in the future.”
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OMERS is one of Canada’s largest defined benefit pension plans, with more than $95 billion in net assets, as of December 31, 2017. Other examples of OMERS Private Equity’s healthcare investments include dermatology provider Forefront Dermatology, dental services provider Great Expressions, outpatient physical therapy and home health provider CBI Health Group, and outpatient rehabilitation services provider Accelerated Rehabilitation Centers.
“Our approach to investment is a patient one, with a focus on growing businesses by providing long-term capital and supporting management,” said Tim Patterson, OMERS managing director. “We’re pleased to partner with Premise Health to pioneer new solutions to enhance health care experiences, while lowering the overall cost.”
Rising health care costs remain a challenge for many organizations. Average annual employer contributions to premiums for family coverage increased 48 percent between 2007 and 2017, from $8,824 to $13,049 per family, according to the Kaiser Family Foundation 2017 Employer Health Benefits Report.
Patterson added that together, Premise and OMERS have “a tremendous opportunity to offer organizations a different approach to health care and make a difference for millions of people.”
Harris Williams& Co. acted as the merger and acquisition advisor to Premise Health for this transaction.