Revere Medical Acquires CareMax's Medicare Shared Savings Program
Deal News | Nov 18, 2024 | Kinderhook Industries
Revere Medical, a multifaceted healthcare provider with operations across six states, has announced an agreement to acquire the Medicare Shared Savings Program portion of CareMax’s Management Services Organization (MSO). This acquisition is significant as CareMax's MSO is an established Accountable Care Organization known for enhancing patient care quality and reducing healthcare costs, aligning well with Revere Medical's strategic vision. The acquisition is backed by Kinderhook Industries, an investment firm specializing in middle market businesses, showcasing its commitment to value-based healthcare practices. The transaction is set to proceed in CareMax's voluntary Chapter 11 proceedings, contingent on court and regulatory approval, and is expected to finalize in the first quarter of 2025. Revere Medical was advised legally by Kirkland & Ellis LLP and for regulation by Bass, Berry & Sims PLC. The deal underscores both firms' dedication to enhancing healthcare delivery through value-based care models.
Sectors
- Healthcare Services
- Private Equity
Geography
- United States – The acquisition involves companies operating within the U.S. healthcare system, and regulatory approvals are subject to U.S. jurisdiction.
Industry
- Healthcare Services – The acquisition involves companies specializing in healthcare delivery and management services, aligning with the broader trend towards value-based care.
- Private Equity – Kinderhook Industries, a private equity firm, is backing Revere Medical's acquisition, highlighting the firm's strategic investments in growing mid-market businesses.
Financials
- $50 million – The collective cost savings generated by CareMax's MSOs in 2023, reinforcing value-based care.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Revere Medical | Buyer | Company | A medical and affiliated provider network operating in six states, acquiring CareMax's MSSP portion. |
| CareMax, Inc. | Target | Company | A technology-enabled care delivery system whose MSO is being acquired by Revere Medical. |
| Kinderhook Industries | Investor | Company | A private investment firm providing backing for Revere Medical's acquisition strategy. |
| Kirkland & Ellis LLP | Legal Counsel | Company | Provided legal advisory services to Revere Medical for the transaction. |
| Bass, Berry & Sims PLC | Regulatory Counsel | Company | Served as regulatory counsel for Revere Medical in the acquisition. |
| Chris Michalik | Managing Director | Person | A Managing Director at Kinderhook Industries, overseeing the investment in Revere Medical. |
| Matt Bubis | Managing Director | Person | A Managing Director at Kinderhook Industries, involved in the Revere Medical acquisition. |