The investment partnership, drawing on CD&R's value-based healthcare expertise and relationship network and operationally-focused capital, will support Vera's continued rapid expansion and innovation. Vera operates a purpose-driven primary care model to serve diverse workforce populations across a broad set of employer partners. Vera also partners with innovative payors to support smaller, fully-insured employers.
The Vera approach, known as Advanced Primary Care, integrates population health informatics, care coordination, health coaching, and patient engagement through primary care-centric care teams to deliver significant improvements in healthcare outcomes at significantly lower cost. On average, employers under contract with Vera have seen a 10%-25% reduction in total healthcare costs and high patient satisfaction rates of 4.7 out of 5. A Vera network of care centers can be found in Alaska, Arizona, California, Idaho, Kansas, Missouri, Nevada, Oregon, Texas and Washington.
"We believe CD&R's stellar reputation, strong values, and deep expertise building next generation healthcare delivery platforms form the basis of a strong long-term relationship that can improve employer-sponsored healthcare in this country," said Ryan Schmid, Vera CEO and Co-founder. "This investment partnership opens up many new rewarding opportunities for Vera to continue to revolutionize healthcare, aligning patients, care providers, payers, and employers around more effective and more affordable care."
CD&R's current portfolio includes two primary care-centered, value-based healthcare businesses, agilon health and Millennium Physician Group. Ron Williams, Operating Advisor to CD&R funds, has assumed the role of Chairman of Vera. Mr. Williams is the former Chairman and CEO of Aetna and current Chairman of agilon health. Additionally, CD&R Partner and founder of agilon health, Ravi Sachdev, has joined Vera's Board.
"We believe Vera is at the forefront of a fundamental shift in the way that the healthcare experience can be curated for employees through an empowered primary care model," said CD&R Partner Ravi Sachdev. "We look forward to working with the talented Vera team and leveraging our experience to support the company's ambitious growth plans and accelerate the pace of innovation in the commercial healthcare market."
Terms of the investment partnership were not disclosed. Transformation Capital (successor to Leerink Transformation Partners) and Archimedes Health Investors will continue to support the company as minority investors. William Blair & Company served as financial advisor to Vera and Choate Hall & Stewart LLP and Cairncross & Hempelmann PS provided legal counsel. Kirkland & Ellis LLP and Debevoise & Plimpton LLP provided legal counsel to CD&R.
About Vera Whole Health
Vera Whole Health is leading the critical shift to value-based care across the United States. Vera is the only care model with the capability to deliver whole system health to a diverse patient population from a single care center. The Vera model is uniquely designed to help people achieve optimum social, psychological, and physical well-being – an outcome that's neither probable nor affordable within the current sick-care system. Vera is the only primary care organization to receive two validations from the Validation Institute for population health outcomes and cost management. Join the health revolution at www.verawholehealth.com.
About Clayton, Dubilier & Rice
Clayton, Dubilier & Rice is a private investment firm with a strategy predicated on building stronger, more profitable businesses. Since inception, CD&R has managed the investment of more than $35 billion in 100 companies with an aggregate transaction value of more than $150 billion. The Firm has offices in New York and London. For more information, please visit www.cdr-inc.com.
SOURCE Clayton, Dubilier & Rice and Vera Whole Health