CareCore National, LLC ("CareCore") and MedSolutions, Inc. ("MedSolutions"), two leading providers of Specialty Benefits Management (SBM) services to managed care organizations and risk-bearing provider organizations, today announced the completion of a merger that will help advance the companies' collective commitment to containing healthcare costs and achieving quality medical outcomes.
The merger allows the two complementary businesses to jointly develop a broader range of innovative and efficient solutions, in addition to those that each company already manages. These include radiology, cardiology, radiation therapy, medical oncology, musculoskeletal and pain management, post-acute care, sleep therapy, lab management and participation in the CMS Bundled Payment for Care Improvement Initiative. The combined company will also be able to invest even more heavily in the information and analytics technologies that both companies have been developing.
"We are now even better positioned to enhance health plans', hospitals' and ACOs' ability to control cost growth and improve health outcomes by ensuring that patients receive appropriate, evidence-based care," said John J. Arlotta, chairman and CEO of CareCore. "Together we can develop new offerings that will further the core goals of U.S. healthcare reform: containing medical cost growth while improving the quality of care for millions of Americans."
"Through this exciting merger, the complementary strengths and best practices of two leading organizations are brought together, further improving the service delivered to clients and patients," said Curt Thorne, president and CEO of MedSolutions. "This merger is an incredible growth opportunity for both businesses, allowing us to expand our portfolio even more rapidly than we could separately."
Mr. Arlotta now serves as CEO of the combined company, while Mr. Thorne is retiring after a successful 16-year career at MedSolutions. Mr. Arlotta brings 40 years of healthcare industry expertise and extensive senior management experience spanning over 30 years. The combined company's management is comprised of a talented and deeply experienced team culled from both companies.
The new company is continuing to operate under both the CareCore and MedSolutions brands for the time being and is headquartered in Bluffton, South Carolina, where CareCore is currently headquartered. MedSolutions' Franklin, Tennessee office remains open and critical to ongoing operations. Additionally, all other current locations for both companies, including call centers, will remain open.
Mr. Arlotta continued, "Both CareCore and MedSolutions have a proven track record of effective medical cost management and ensuring medically appropriate treatment for patients. We have developed a great integration plan that will maximize the strengths of both organizations, and I am excited about how we can enhance our programs and the customer experience through our combined company."
RBC Capital Markets LLC and Evercore Partners Inc. served as financial advisors and Constantine Cannon LLP, Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Epstein Becker & Green, P.C. provided legal counsel to CareCore. Goodwin Procter LLP, McDermott Will & Emery LLP, and Bressler, Amery & Ross, P.C. provided legal counsel to MedSolutions.