While Americans struggled to pay for healthcare or went without White House Health Reformer Nancy Ann DeParle grew her wealth substantially. She serves on HCA and CVS's board of directors and holds 14,662 HCA and 11,051.CVS shares. Her holdings are worth $2.8 million at Friday's market close. However DeParle also makes big money from privately held companies.
Nancy-Ann DeParle is a Partner and Co-Founder of Consonance Capital Partners. Prior to CCP, she was Assistant to the President and Deputy Chief of Staff for Policy in the Obama White House from 2011-2013, and served as Counselor to the President and Director of the White House Office of Health Reform from 2009-2011.In 2014 Consonance Capital bought KEPRO which has Pennsylvania Medical Society Peer Review Organization roots.
KEPRO works under contract to the Centers for Medicare & Medicaid Services (CMS), an agency of the U.S. Department of Health and Human Services. KEPRO is committed to continuous quality improvement by providing medical case review.Consonance Capital flipped the company last year.
New York, NY, May 30, 2017 – Consonance Capital Partners, a leading healthcare-focused private equity firm, announced today that it has completed the sale of KEPRO. Terms of the transaction were not disclosed.However Moody's rated the deal's debt and reported $520 million in financing:
Proceeds from the $205 million first lien term loan, $100 million second lien term loan and about $215 million in common equity will fund the leveraged buyout of the company, refinance existing debt, and pay transaction fees and expenses.KEPRO's news section never mentioned the sale. It had two stories in May 2017 but neither addressed Consonance Capital's sale to Apax Partners, a UK based private equity underwriter (PEU),
Apax Partners offered strong support to Sir David Walker in his review of the private equity industry in 2007. In light of the review's findings, which identified a need for enhanced transparency and accountability within the industry, we are keen to increase the understanding of Apax Partners in particular and the private equity industry in general.For all Apax Partners' talk of transparency advisor Cain Brothers reported:
May 30, 2017 –Consonance Capital Partners has sold KEPRO, a medical management and cost containment solutions for government and private sector clients in the healthcare sector. The buyer was not identified. No financial terms were disclosed. Leerink Partners LLC and Cain Brothers & Company LLC advised Consonance and KEPRO on the transaction.Also in 2007 Apax Partners had an unusual Chairman resignation:
Lord John Browne, the BP chief executive who was forced to resign under a cloud over a lie he told about his private life, has quit his new role as chairman of private equity group Apax Partners.Prior to appointing him Chairman Apax knew Lord John Browne drastically cut maintenance expenses at the Texas City Refinery which resulted in a horrific explosion that killed 15 people and injured 180,
The greed and leverage PEU boys will not save America's absurd healthcare system. The are expressly not the tonic and anathema to continuous quality improvement, according to founder Dr. W. Edwards Deming..
The world's quality guru, Dr. W. Edwards Deming, spoke in 1984 about an economy without takeovers, without leveraged buyouts (LBO firms). LBO morphed into private equity before exploding the last few decades. Greed is their constancy of purpose.
Deming died in 1993 before KKR's takeover of HCA added over $15 billion in costs to America's healthcare system. He would be horrified to learn of private equity's greed-based assault on all elements of our healthcare system.
Nancy Ann DeParle will continue to enrich herself from the buying and selling of healthcare and healthcare companies. The rest of us will be much worse off.
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.
Update 11-29-22: The Carlyle Group is merging affiliate CNSI and Kepro. Apax Partners will exit Kepro in the deal. They claim the combined firm will improve healthcare quality. That remains to be seen.
Update 9-5-23: Accentra Health CEO Todd Stottlemyer garnered a spot on Virginia Business 2023 Power List. Carlyle can do that for their PEUple. It helps that Governor Glenn Youngkin is a former Carlyle co-CEO and counts on Stottlemyer, who contributed $25,000 to the Youngkin campaign. It's the PEU way.
Update 1-9-24: Carlyle's Acentra bought
EAP Consultants, LLC (“Espyr”), a leader in workplace mental health and
well-being programs. Will they be able to undo the harms done to
employee mental health by PEU ownership?
