The private equity business of Goldman Sachs Asset Management and Charlesbank Capital Partners entered into a definitive agreement to acquire majority ownership of MDVIP from Leonard Green & Partners and Summit Partners.
Founded in 2000, MDVIP is a membership-based healthcare provider with a network of more than 1,100 primary care physicians serving 357,000 patients across the U.S.
“The past 18 months have been a catalyst for Americans to become more engaged in their health, and many are recognizing the need for better prevention and coaching from a primary care doctor who really knows them,” Bret Jorgensen, chairman and CEO of MDVIP, said. “For 21 years, MDVIP has built and scaled its physician practice model to meet this consumer demand, and the market for our services will continue its momentum. This investment by Goldman Sachs and Charlesbank speaks to the strength and resiliency of our business model, and we are excited to partner with them as we embark on our next phase of growth.”
As part of its growth strategy, MDVIP is expanding its portfolio of services to meet the needs of new customer segments. For example, the company is working with hospital systems to incorporate the MDVIP model into primary care offerings. To address the unique health concerns of women, the company also introduced a Women’s Health Program that pairs gynecological health with preventive primary care.
“MDVIP has an impressive track record of delivering business growth to investors and proven healthcare outcomes that benefit patients, physicians and the healthcare system at large,” Jo Natauri, a partner and the global head of private healthcare investing within Goldman Sachs Asset Management, said. “The company’s history and ability to adapt to a rapidly changing healthcare environment make it a strong addition to our investment portfolio, and we look forward to partnering with Charlesbank and the MDVIP management team.”
“MDVIP has a proven and innovative business model that represents the best in membership medicine,” Brandon White, a managing director at Charlesbank Capital Partners, said. “We are excited to back this talented management team as they build on their historical track record of outstanding services for physicians and members alike.”
“We look forward to working with Goldman Sachs to help MDVIP accelerate its growth and further solidify its position as the market leader in this consumer-driven healthcare landscape,” Josh Beer, a managing director at Charlesbank Capital Partners, said.
Over time, the MDVIP primary care model has improved patient outcomes as demonstrated by clinical data published in 10 peer-reviewed studies. The research shows that patients in MDVIP-affiliated practices have fewer heart attacks and strokes, better chronic care management of diseases like diabetes and high blood pressure and more preventive screenings, including regular colonoscopies, mammograms and bone density scans. Compared with patients in traditional practices, MDVIP members have also experienced reduced hospitalizations, lower hospital readmission rates and fewer visits to urgent care centers and emergency rooms.
“MDVIP continues to transform primary care for Americans across the country,” Alyse Wagner, a partner at Leonard Green & Partners, said. “It has proven to be a successful model for both doctors and patients, and we have great confidence in the future of its business.”
“This is a pivotal moment for U.S. healthcare companies, and we appreciate the support we received from Leonard Green & Partners and Summit Partners,” Jorgensen said. “We also thank our community of physicians, members and employees who every day are advancing MDVIP’s purpose of ‘making healthier lives happen.'”
The transaction is expected to close in Q4/21 following receipt of customary regulatory approvals. Financial terms were not disclosed.