WASHINGTON, May 29, 2019 /PRNewswire/ -- Evolent Health
(NYSE: EVH), a company providing an integrated value-based care
platform to the nation's leading providers and payers, today
announced it has entered into a definitive agreement to partner
with the current owners of Passport Health Plan in continuing to
serve the Kentucky Medicaid market. The current owners, which
include The University of Louisville,
University of Louisville Physicians,
University Medical Center, Jewish Heritage Fund for Excellence,
Norton Healthcare and the Louisville/Jefferson County Primary Care
Association, have been seeking a partner to provide expanded
management and operational support, as well as capital through
joint ownership of the health plan, and have selected Evolent as
its long-term financial and operating partner.
Per the terms of the agreement, Evolent will acquire an
ownership interest in Passport Health Plan and will expand the
scope and term of its long-term Management Services Agreement with
the health plan. Passport will be jointly owned and operated in
partnership between Evolent, The University of
Louisville and other Passport owners.
Passport is a Louisville-based
health plan that serves more than 300,000 Medicaid beneficiaries
and has provided managed care services in Kentucky for over 20 years. Evolent has
provided extensive services to Passport since 2016, when the
organizations formed a relationship to launch the Medicaid Center
of Excellence, focused on improving health outcomes for Medicaid
beneficiaries in Kentucky and in
several states nationwide. Since partnering with Passport, Evolent
has directly engaged thousands of Passport members through
innovative clinical programs and an integrated model of care in
partnership with local providers.
"We strongly believe in Passport's mission and have been proud
to partner with Passport's leadership team to serve the
Commonwealth of Kentucky," said
Evolent Health Chief Executive Officer Frank Williams. "We are honored by the vote of
confidence the owners of Passport have given us to continue to
build on an extraordinary legacy of delivering an excellent member
experience to Kentucky's Medicaid
beneficiaries. We are confident that by leveraging our value-based
care platform and the full scope of our clinical programs, as well
as providing enhanced functional expertise, we can drive strong
operational and financial performance. We look forward to
collaborating with The University of
Louisville and other Passport owners—as well as local and
state regulatory agencies and other key stakeholders—to continue
driving improved health outcomes and critical support to one of the
Commonwealth's most vulnerable populations."
"The University of Louisville helped
create Passport Health Plan in 1997, paving the way for what has
become a national model for managed care," said The University of Louisville President Dr. Neeli Bendapudi. "Now, we are proud to partner
with Evolent Health to begin a new chapter that will continue to
spark innovation in the delivery of care."
"For the past 20 years, Passport has been proud to work with the
Commonwealth, our provider partners and other valued supporters to
deliver a quality health plan that promotes our members' best
interests and health outcomes," said Passport Health Plan Chief
Executive Officer Mark Carter. "I am
confident that Passport has a bright future ahead, thanks to the
solid foundation we've built and the significant investment,
expertise and support that Evolent brings to the table. Evolent and
Passport are dedicated to finding ways to bring the West Louisville
Health and Wellbeing Campus to life, as we believe it will
significantly positively impact the health of the community.
Evolent and Passport will be working with developers and key
stakeholders to create a definitive plan and select a real estate
developer to bring the project to fruition."
Transaction Details
- Per the terms of the agreement, Evolent will contribute
$70 million for a 70 percent
ownership interest in Passport Health Plan and will also provide
interim balance sheet support if necessary to meet near-term
regulatory capital requirements. Evolent Health expects to account
for its ownership interest in the joint venture as an equity method
investment.
- Passport will be jointly owned and operated through a
partnership between Evolent, The University of
Louisville, University of
Louisville Physicians, University Medical Center, Jewish
Heritage Fund for Excellence, Norton Healthcare and the
Louisville/Jefferson County
Primary Care Association. The plan will be governed by a newly
formed board of directors upon closing with joint representation
from the current owners and Evolent Health.
- As part of the transaction, Evolent will expand its existing
Management Services Agreement (MSA) with Passport, taking on
additional responsibilities for day-to-day management of the health
plan including administrative, clinical and financial operations
and oversight. Evolent will also enhance its clinical scope with
additional clinical program support, network optimization and
specialty care management, specifically in oncology and
cardiovascular services. The amended MSA will have a 10-year
term.
- The agreement is subject to normal closing conditions including
approval from several state and federal regulatory agencies.
Advisors
Wyatt Tarrant
and Combs, LLP is acting as legal counsel to The University of Louisville and provider sponsors.
Bass, Berry & Sims PLC is acting as legal counsel to
Evolent.
Conference Call and Webcast Details
Evolent will hold
a conference call to discuss details of the transaction today,
May 29, 2019, at 8:00 a.m., Eastern Time. The conference call will
be available via live webcast on the company's Investor Relations
website at http://ir.evolenthealth.com. To participate by
telephone, dial 1.855.940.9467 and ask to join to the Evolent call.
Participants are advised to dial in at least 15 minutes prior to
the call to register. The call will be archived on the company's
website for 90 days and will be available beginning later this
evening. Evolent invites all interested parties to attend the
conference call.
Forward Looking Statements: Cautionary
Language
Certain statements made in this release contain
certain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended (the
"PSLRA"), including, but not limited to, statements regarding the
pending expanded partnership with Passport Health Plan and pending
expanded management services agreement. Evolent and Evolent Health
LLC (the "Evolent Entities") claim the protection afforded by the
safe harbor for forward-looking statements provided by the PSLRA.
Actual events or results may differ materially from those contained
in these forward-looking statements. The factors that could cause
future events or results to vary from the forward-looking
statements contained herein include, without limitation, risks and
uncertainties related to the consummation of the transaction,
including the ability to obtain regulatory approvals, and risks and
uncertainties relating to the ongoing operation of Passport Health
Plan, including unanticipated costs, the ability of Evolent to
provide interim balance sheet support to meet near-term regulatory
capital requirements and the results of the ongoing Kentucky
Medicaid managed care request for proposal. Please refer to the
periodic reports that Evolent has filed with the SEC, including its
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K and the risk factors noted therein.
Such periodic filings by Evolent identify and address other
important factors that could cause future events or results to vary
from the forward-looking statements set forth in this Current
Report on Form 8-K. In addition, the Evolent Entities disclaim any
obligation to update any forward-looking statements contained
herein to reflect events or circumstances that occur after the date
hereof.
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About Evolent Health
Evolent Health partners with
leading provider and payer organizations to achieve superior
clinical and financial results in value-based care and under
full-risk arrangements. With a provider heritage and over 20 years
of health plan administration experience, Evolent partners with
more than 35 health care organizations to actively manage care
across Medicare, Medicaid, commercial and self-funded adult and
pediatric populations. With the experience to drive change, Evolent
confidently stands by a commitment to achieve results. For more
information, visit evolenthealth.com.
Contacts:
Bob East or Asher
Dewhurst
443.213.0500
Investor
Relations
InvestorRelations@evolenthealth.com
|
Robin
Glass
415.505.8152
Evolent Media
Relations
RGlass@evolenthealth.com
|
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SOURCE Evolent Health