Several private equity firms are investing in primary care clinic operators, driven in part by greater employer pressure to lower medical costs, according to Bloomberg.
Here are three things to know:
1. Private investor New Enterprise Associates led a $165 million funding round for Paladina Health, a Denver-based primary care company. Paladina runs 53 primary care clinics in 10 states for employers. Earlier this year, NEA acquired Paladina for about $100 million from DaVita. Paladina plans to use the funds to expand its clinics, acquire other firms and look into caring for Medicare populations.
2. Private equity firm Carlyle Group is investing up to $350 million in One Medical, a national primary care clinic operator with offices in San Francisco and New York City. One Medical is working to sign up employer clients at its clinics, according to Bloomberg.
3. Boston-based primary care operator Iora Health, which serves Medicare beneficiaries, raised $100 million from investors this year. Companies like Iora are seeing higher funding rounds as investors focus on preventive care as a possible way to limit the cost of providing employees healthcare, the report states.
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