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Senior Whole Health

Details

Sector(s) | Subsector(s) Healthcare | Payor / Payor Services
Investment Year 2011
Status Past | Acquired by Magellan Health, Inc.
Location Cambridge, MA
Region North America
Exited Year 2017

Senior Whole Health is a platform focused on containing costs for highly complex populations.

TA helped Senior Whole Health:

  • Recruit a new CEO, CFO, CMO, CTO and two independent directors
  • Achieve a 4-star quality rating by Centers for Medicare and Medicaid Services (“CMS”)
  • More than triple EBITDA
  • Nearly triple employee count
  • Enter into seven new markets

About Senior Whole Health

Senior Whole Health is a dual eligible special needs managed care plan headquartered in Cambridge, Massachusetts. The company addresses the needs of “dual eligibles,” aged individuals who are eligible for both Medicare (age 65 and older) and Medicaid (at or below the federal poverty level), in Massachusetts and New York. Senior Whole Health’s services are designed specifically to meet the needs of a dual eligible population that is culturally diverse, below the federal poverty line, frail, disabled, chronically ill and/or at the end of life.

The Investment Opportunity

TA has a multi-decade track record of investing in profitable growth companies within the evolving healthcare industry. From life science tools and healthcare IT, to payor services and medical technology, TA seeks to partner with healthcare companies that support system efficiency, quality care and cost containment. Senior Whole Health met each of these characteristics, particularly given the company’s ability and mission to provide enhanced quality of life for all of its members. In November 2011, TA completed the buyout of Senior Whole Health from its existing private equity and venture capital investors.

Adding Value to Scale Growth

As a company that was catering to dual eligibles, one of fastest growing yet underserved populations within the U.S. healthcare system, Senior Whole Health was well positioned to capitalize on industry tailwinds. The company had a powerful clinical model that TA believed could be applied to additional markets over its investment period.

TA initially worked closely with Senior Whole Health to recruit top industry talent to create an experienced and aligned management team that would accelerate the company’s market penetration. Further, TA’s team of investment professionals and TA’s Strategic Resource Group helped Senior Whole Health to successfully implement technology and lead generation tools to scale into other markets such as New York, one of the most populous dual eligible states in the U.S.

Today, Senior Whole Health continues to provide its services to tens of thousands of members in Massachusetts and New York. During TA’s investment period, Senior Whole Health’s revenues quadrupled, while its EBITDA more than tripled in less than six years. Furthermore, during that timeframe, the company experienced a compound annual growth rate of 19% and its employee base grew from 221 to more than 600.

In October 2017, TA sold its stake in Senior Whole Health to Magellan Health (NASDAQ: MGLN), a Fortune 500 company.

Case studies have been selected for illustrative purposes for management teams of growth companies considering a partnership with TA and should not be considered an offer or solicitation of services or an actual or implied endorsement of TA or any security, investment or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of TA. A list of investments for the past 25 years is available on this website.

In the News

Nov 08, 2011

TA Associates Completes Investment in Senior Whole Health

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