Combined business to provide scalable in-home primary care to Medicaid and Medicare Advantage populations augmented by robust outreach and social engagement capabilities
ATLANTA–April 10, 2020--MedZed, a rapidly-growing provider of in-home primary care services through a telehealth-based solution, has acquired Integra ServiceConnect (“Integra”), a TT Capital Partners (TTCP) Fund I, LP, (“Fund I”) portfolio company. The deal was finalized on April 1, 2020, and combines Integra’s differentiated ability to locate and engage members with MedZed’s home-based primary care to offer an integrated clinical and social model for complex populations. Scott Schnell, chief executive officer and co-founder of MedZed, will continue to serve as the CEO of the combined entity.
“When we began looking at this opportunity, the strategic combination excited us,” said MedZed CEO Scott Schnell. “Our offerings are complementary, enabling us to offer world class engagement, in addition to excellent clinical care, for the members we serve in expanded markets throughout the country.”
Headquartered in Atlanta, with operations in multiple markets throughout California, MedZed provides a scalable primary care model in which in-home nurses are augmented by virtual complex care providers including physicians, physician assistants and nurse practitioners. MedZed focuses on providing efficient, high-quality care to high-risk populations in a way that can reduce costs and improve patient health. In addition, the company is able to reach vulnerable patients who have risks or other barriers associated with in-home care. MedZed’s clinical model and leadership team, led by CEO Scott Schnell and Chief Medical Officer and Co-Founder Neil A. Solomon, M.D., helped to drive more than 100 percent revenue growth in 2019.
With operations in multiple states, Integra represents approximately a quarter of the combined company revenue and addresses the social needs of its members. Integra will continue to operate its existing business while leveraging its expertise to help MedZed engage more members in its existing markets. Integra’s Community Health Worker engagement model which has yielded high success rates compared to traditional remote outreach methods will be implemented with MedZed’s existing customers enabling increased engagement and retention rates of referred Medicaid members.
“We see the combination of MedZed and Integra as a powerful differentiator in the market, aligning on a shared mission to serve vulnerable populations,” said Ryan Engle, partner at TTCP. “This ‘engagement plus care’ model, in combination with the proprietary software solutions and strong market positions offered by both companies, will help to provide a much-needed and comprehensive solution to the healthcare system.”
“With this acquisition we not only create a more compelling product offering for our customers, but we also gain a value-add investor in TTCP,” said Schnell. “The unique combination of their industry insights and deep healthcare relationships makes TTCP the right partner as we collaborate to advance the business in the coming years.”
For the next several quarters, the company will focus on strategic integration efforts, operational execution and business development, while partnering with existing clients to address the impact of COVID-19 on care delivery through telehealth. The company will also implement several new programs with existing and new customers.
MedZed, based in Atlanta and now with operations in California, Washington, Maryland and New Jersey, partners with health insurers and other risk-bearing entities to provide next-generation house calls and social support to individuals with chronic conditions by combining its mobile network of qualified nurses and community health workers with its proprietary telemedicine solution, Tapestry. MedZed care providers visit patients where they live and connect them in real time to the company’s team of physicians, physician assistants and nurse practitioners. MedZed serves the frailest and sickest five percent of the population driving half of today’s healthcare costs.
About TT Capital Partners
TT Capital Partners (TTCP) is a healthcare investor, collaborating with healthcare technology and services companies that have the potential to become market leaders. Leveraging the insights garnered from a unique knowledge-based platform, TTCP has invested in some of the most innovative, high-growth healthcare businesses. TTCP is part of the TripleTree healthcare merchant bank. For more information, visit www.TTCapitalPartners.com.
Michael Schutsky, 212.537.8748