QuadMed to Acquire Novia CareClinics
QuadMed to Acquire Novia CareClinics
Combined Company Will Operate More Than 90 Clinics in 18 U.S. States and
Offer a Broader Range of Healthcare Solutions for Employers of All Sizes,
Including Those with Small or Dispersed Employee Populations
QuadMed, LLC, and Novia CareClinics, LLC – two innovators in employer-sponsored healthcare management solutions and on-site primary care – have entered into a definitive agreement whereby QuadMed will acquire all of Novia CareClinics operations and merge their executive management and operations teams accordingly.
The transaction will strengthen both companies’ leadership positions in the healthcare markets they serve, enabling them to offer the best of their respective models to a wider range of employers who are seeking to improve access to quality healthcare while also reducing costs.
“This acquisition is a cultural and strategic fit that supports both companies’ vision for growth,” said Tim Dickman, President of QuadMed, a subsidiary of global printer and media channel integrator Quad/Graphics (NYSE:QUAD). “Novia’s leadership in developing and managing onsite and shared primary care clinics for small to mid-size companies and the public sector complements QuadMed’s successful model of ground-breaking healthcare management solutions for larger companies with a national presence.”
“QuadMed shares our values and our philosophy of improving the quality of patient care while putting a strong focus on driving behavioral changes and controlling costs,” said Eric Olson, President of Novia CareClinics. “We built our respective businesses independent of any competing interests that could have potentially detracted from our true purpose of keeping people healthy. Combining the strengths of our two companies will make an even more meaningful difference in today’s complex healthcare landscape.”
The combined company will offer clients:
- An expanded U.S. geographic footprint that better meets the healthcare needs of multi-location companies locally, regionally or nationally;
- A broader range of services and best-in-class solutions tailored to specific employee-population needs, including chronic condition management, nutrition and wellness programming, and injury rehabilitation;
- A continuum of competitively priced healthcare solutions that includes standalone clinics for employers with large concentrations of employees at single sites, shared clinics for multiple employers with smaller concentrations of employees in a geography, and corporate health suites with telemedicine capabilities for employers with limited real estate, small employee populations and/or dispersed workforces.
“We started QuadMed more than 20 years ago to improve our company’s access to quality, cost-effective healthcare – a bold move that transformed us from a purchaser of health insurance to an investor in employee health and productivity,” said Joel Quadracci, Chairman, President & CEO of Quad/Graphics. “Because the QuadMed model was created by an employer, it addresses employers’ needs for healthcare solutions that promote healthy living and disease prevention, and improve outcomes while reducing costs. Now, with our investment in Novia CareClinics, we can build on QuadMed’s successful model. As a large employer with nearly 20,000 employees in 28 states, we can partner with other employers to create shared clinics, and continue to pass on what we’ve learned during our healthcare management journey.”
Quadracci emphasized that the acquisition is expected to create value for Quad/Graphics. “This investment will help us, as the parent company, better manage healthcare costs across our entire network of facilities, both large and small. In addition, the acquisition fits with QuadMed’s strategy to grow the breadth and depth of its healthcare management solutions at a transformative time in the healthcare industry. Together with Novia CareClinics’ expertise in shared clinics, small- to medium-sized companies and the public sector, our QuadMed subsidiary will have a much broader offering, which will strengthen our competitive position and fuel the growth of this segment of our business.”
Together, QuadMed and Novia CareClinics will operate more than 90 clinic locations across 18 U.S. states and serve the needs of more than 150,000 patients. The combined company will maintain existing administrative support offices in Wisconsin as well as Indianapolis where Novia CareClinics is headquartered.
Once the acquisition is complete, Tim Dickman will continue to serve as President of QuadMed, and Eric Olson, current President of Novia CareClinics, will join QuadMed as a member of the executive management team. Other key Novia CareClinics management team members will be fully integrated into the combined company’s operations.
The transaction is expected to close in approximately 30 days.
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our current expectations about the Company’s future results, financial condition, goals, strategies, revenue, earnings, free cash flow, margins, prospects and/or outlook and are indicated by words or phrases such as “anticipate,” “estimate,” “expect,” “project,” “believe” and similar words or phrases. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on Quad/Graphics expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control. The factors that could cause actual results to materially differ include, among others, the risks identified in Quad/Graphics most recent Annual Report on Form 10-K, as such may be amended or supplemented by subsequent Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission. Except as required by the federal securities laws, Quad/Graphics undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
QuadMed (www.quadmedical.com) is a nationally recognized innovator in offering onsite primary care clinics and healthcare management solutions proven to increase quality and decrease costs. QuadMed’s 20-year track record of success is rooted in integrating prevention-focused primary care with leading-edge information management data. Created in 1990 as a subsidiary of global provider of print and related multichannel solutions Quad/Graphics, QuadMed now serves a wide variety of Fortune 1000 companies.
About NoviaCare Clinics
Based in Indianapolis, Novia CareClinics, LLC, operates 50 center locations, servicing more than 90 different employers located throughout Indiana and four other states. Novia focuses on delivering advanced health and wellness solutions to employees and dependents.
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