Tuesday, May 12, 2009

How Might Nancy-Ann's Companies Do in Health Reform?

Last year White House Health Czar Nancy-Ann DeParle worked hard on behalf of for-profit health care. Nancy-Ann served as managing adviser for CCMP Capital Management, a private equity underwriter (PEU). She also sat on five boards of directors. Her public board pay amounted to over $530,000 for 2008.

CCMP's Health Care Portfolio:

CareMore Medical Enterprises
-managed healthcare provider serving Medicare beneficiaries, i.e. a Medicare Advantage health plan.

Legacy Hospital Partners-privately held hospital company that will own, operate and manage acute care hospitals in small cities and in select urban markets

National Surgical Care-acquires and develops freestanding ambulatory surgery centers in partnership with physicians and hospitals.

Warner Chilcott-Bermuda based specialty pharmaceutical company focused on women's health care & dermatology. (The firm plans to move to Ireland. Steven Rattner, Obama's Car Czar sits on the WC board.)

Board positions:

Medco Health Solutions-pharmaceutical distributor

-Dialysis care

-Health care IT

Boston Scientific
-medical devices. (John Sununu joined the BS board, alongside Warren Rudman.)

As a board member, Mrs. DeParle was granted stock options that vest in October 2009. How might her firms fare in looming health care reform? Take CareMore Medical Enterprises. It was acquired by CCMP in 2006. The press release stated:

The team identified CareMore as an ideal platform company. In the future, CareMore will seek to expand the scale of its unique clinical model through additional provider partnerships and health plan acquisitions.

What's the model? CareMore focuses on preventive care and the proactive identification and management of frail patients to yield lower medical costs.

Caremore serves Medicare patients in four markets in California. It's moving into Tucson, Arizona. Their recruitment ads state:

CareMore is coming to Tucson! CareMore is looking for dynamic individuals to join our team! CareMore is a leading healthcare system specializing in providing a complete, pro-active health care experience to Senior Americans. CareMore strongly believes in our innovative and caring vision to lead the next generation of health care and we look for candidates that share in our passion.

When CCMP purchased CareMore's Medicare Advantage plan, it served patients in Los Angeles and Orange Counties. Under Nancy-Ann's tutelage, CareMore Medical Enterprises doubled its presence in California and is moving into Arizona. How will CareMore's attractive platform grow under Obama health reform? Stay tuned!

Update 7-5-11:  CCMP sold CareMore to WellPoint for $800 million, earning five times its original investment. Nancy-Ann's financial disclosure form isn't clear on what conflicting holdings have been sold.  Will DeParle get any CareMore proceeds?  Most ex-board members participate, especially those serving as Managing Director of the PEU owner.

Update 2-19-21:  Nancy Ann Deparle had a banner payday after Consonance Capital sold Enclara Healthcare to Humana in 2020.  Enclara is "one of the nation's largest hospice and benefit management providers."  Yet, Humana intends to spin off Kindred Hospice as it prefers a partnership model for end of life care.