Landmark Health, a private-equity backed company that provides in-home medical care, is exploring a potential sale, the Wall Street Journal reported Thursday. The publication cited unnamed sources with knowledge of the situation.
A transaction is being pursued to free up Landmark CEO Adam Boehler (pictured above) to head up the Center for Medicare & Medicaid Innovation (CMMI), according to the sources who spoke with the WSJ. In December, Politico reported that Boehler is the leading candidate to take that role.
Landmark Health had not responded to a request for comment from Home Health Care News as of press time.
If the sale goes through and Boehler moves on to CMMI, it would put an entrepreneur with a background in home-based care at the helm of the organization that has spearheaded the development of alternative payment models in Medicare and Medicaid, including accountable care organizations (ACOs) and bundled payment programs.
Many home health and home care providers see opportunity in these models, saying they incentivize more care in low-cost settings such as people’s homes. The Trump administration has taken steps to change CMMI’s approach, such as by scaling back mandatory bundled payment models.
Landmark was founded in 2013 and is backed by San Francisco-based private equity firm Francisco Partners. With service areas in California, Oregon, Washington, New York, Massachusetts and Pennsylvania, Landmark works with physician groups, health systems, and other organizations to provide in-home care for chronically ill patient populations. Services include wellness visits, urgent care, post-acute care and care coordination. The company enrolled its 5,000th patient in 2016.
Landmark is projected to generate about $53 million in earnings before interest, taxes, depreciation and amortization in 2018, according to the sources who spoke with the Wall Street Journal. Oxeon Partners and McKesson Ventures also are invested in the company, which has raised a total of $60.8 million, according to Crunchbase.
Written by Tim Mullaney