Montlake Capital invests in Fedelta Home Care
Growth-equity firm Montlake Capital has announced it will fuel Fedelta Home Care’s growth efforts.
Founded in 2004, Seattle-based Fedelta provides both home care and home health care services in the Puget Sound region. As a provider, Fedelta provides in-home care services to individuals of all ages, offering both short-term care and long-term support.
Montlake Capital principally targets Pacific Northwest businesses with $5 million to $50 million of revenue and $1 million to $10 million of EBITDA. Moving forward, Montlake Capital will contribute a growth-equity investment in Fedelta, which the provider will use to help the company retain and attract a skilled workforce, according to Fedelta CEO Steve Meyer.
“I believe we have found the best partner for our company,” Meyer said in a statement. “I have maintained a relationship with the Montlake team for more than 10 years and believe they are uniquely qualified to help us build Fedelta into the leading independent home care and home health company in the region. Montlake will add both capital and expertise, and I appreciate their success and understanding of health care services and experience building leading businesses in and around Puget Sound.”
Montlake Capital’s investment in Fedelta reflects the growing interest in home-based care companies among PE groups and growth equity firms. Similar investments will likely be common throughout 2020, especially as PE firms sit on an estimated $1.5 trillion in unspent capital.
Humana invests in social determinants of health
Humana Inc.’s (NYSE: HUM) philanthropic arm, the Humana Foundation, plans to invest a total of $1 million in two New Orleans organizations to address social determinants of health. The investment is part of a broader effort to invest $7.6 million in eight communities overall.
Humana is one of the largest health companies in the U.S. — a mix of both payer and in-home care provider. The Louisville, Kentucky-based company, which includes in-home care entities Kindred at Home and Humana At Home, covers roughly 20 million lives.
The Humana Foundation’s Strategic Community Investment Program partners with community organizations to tackle social determinants of health, such as employment, social connectedness, financial asset security and food security.
In the past few years, social determinants of health have gained wider recognition within the U.S. health care system due to the ways socioeconomic and environmental factors impact differences in health status.
The Humana Foundation will invest $416,480 in Kingsley House’s Career Pathways, an employment program that aims to help families that face generational poverty.
Additionally, the foundation will invest $613,620 in Growing Local Food Collaborative, an organization that plans to bring fresh food into food deserts and works to build an employment pipeline for local youth.
Other investments as part of the $7.6 million initiative are focused on seniors.
“We believe this approach will positively impact health outcomes in our target communities, which our first year results confirm,” Walter D. Woods, CEO of The Humana Foundation, said in a statement. “Consequently, we are creating new investments in New Orleans and continuing our investments in other locations.”
PACE enrollment sees growth
Programs for All-Inclusive Care for the Elderly (PACE) has reached an enrollment milestone, hitting 10,000 members in California.
Enrollment in the program jumped from 3,100 in 2011 to roughly 10,000 in 2020, according to new data from CalPACE.
PACE is a Medicare and Medicaid program that aims to keep people in their communities and out of nursing homes. Among the services that PACE programs provide are adult day, home care and various types of therapy. PACE often operates with the support of in-home care providers and their staff.
“PACE provides improvements in health and quality of life for frail seniors and reduces family and caregiver burnout by offering a proven, cost-effective and high-quality alternative to nursing home placement,” Linda Trowbridge, CEO of Center for Elders’ Independence, said in a statement. “It’s no surprise that enrollment in the program is growing rapidly.”
Last year, nonprofit West PACE launched with $11 million in philanthropic funding.
CommonSpirit Health, Lyft, LogistiCare form partnership
CommonSpirit Health, Lyft Inc. (Nasdaq: LYFT) and LogistiCare have teamed up to improve care access by providing non-emergency medical transportation.
Chicago-based CommonSpirit operates across 142 hospitals and more than 700 care sites in 21 states.
Meanwhile, LogistiCare is a manager of non-emergency medical transportation programs for state governments and managed care organizations.
Under the partnership, CommonSpirit’s patients will receive access to transportation — a common social determinant of health barrier.
“When our patients aren’t feeling well, the entirety of their interaction with our system – from their provider visit to discharge to their door – affects their experience,” Christine Brocato, system vice president for strategic innovation at CommonSpirit Health, said in a statement. “By giving our caregivers access to LogistiCare’s ride-ordering platform, we can help our patients get rides within minutes and help give staff the peace of mind that their patient is getting a reliable ride so they can continue to devote their time to providing compassionate care.”
Additionally, CommonSpirit and Lyft plan to create an innovation task force that focuses on transportation challenges.
This isn’t the first time Lyft has attempted to address transportation barriers. The ride-hailing company also recently formed a partnership with nonprofit health system Sutter Health, for example.