DaVita sells subsidiary Paladina Health to New Enterprise Associates for $100 million
Paladina Health operates more than 50 physician offices in 10 states using direct primary care model.
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DaVita Inc, best known for its kidney dialysis services, has sold its primary care clinic business known as Paladina Health to Silicon Valley's New Enterprise Associates, a global venture capital firm, for $100 million.
"We are bullish on Paladina's future and thrilled that New Enterprise Associates will be their new home," said Kent Thiry, DaVita chairman and CEO in a statement.
Paladina operates under a direct primary care model, meaning it does not accept insurance. Rather, it sells directly to employers who then pay a monthly fee on behalf of employees. The fees vary depending on the size and health of the population in question.
Paladina Health operates more than 50 physician offices in Colorado, Washington, Texas, Wisconsin, Ohio, North Carolina, South Carolina, Kentucky, New Jersey and Florida, and has plans to expand further.
"Driven by a stellar management team, the company's adaptive DPC model has proven to meet the growing needs of patients by delivering excellent care that not only results in high patient and provider satisfaction, but also drives down cost," said Mohamad Makhzoumi, general partner at NEA.
Merger and acquisition activity has surged ahead at a blistering pace so far this year, and this is certainly one of the largest acquisition deals we've seen so far. DaVita has been on the selling end of some major deals, having just sold their DaVita Medical Group for $4.9 billion in cash to Optum, an arm of UnitedHealth, in December of 2017.
DaVita Medical Group operates about 300 medical clinics and affiliated physician networks, as well as 35 urgent-care centers and six outpatient surgery centers in California, Colorado, Florida, Nevada, New Mexico, and Washington.
Twitter: @BethJSanborn
Email the writer: beth.sanborn@himssmedia.com
