Activate Healthcare LLC has received a multimillion dollar growth equity investment from New York investment management firm Spring Mountain Capital LP.
Indianapolis-based Activate Healthcare was the subject of a recent BizTimes Milwaukee cover story. The company recently entered the Wisconsin market with its unique health care delivery model.
The health clinic operator offers onsite and near-site employer clinics that emphasize proactive and preventive care. It caters to employers of all sizes, and currently has 20 clinics in the Midwest.
“We look forward to our new partnership with Activate Healthcare and working closely with Debra and Peter as they look to execute on their innovative approach to reducing health care costs for employers while providing high quality care for employees,” said Jamie Weston, managing director in Spring Mountain Capital’s private equity group. “Our private equity group looks to invest in growth equity opportunities like Activate Healthcare that are leading a paradigm shift in their industry.”
Activate Healthcare’s approach to workplace health and wellness is similar to that of QuadMed, a health care subsidiary of Sussex-based Quad/Graphics Inc. that also offers employers onsite clinic options. Patricia Lenius, vice president of business development at Activate, contributed to the development of QuadMed’s model while working as a corporate athletic trainer at Quad/Graphics.
Activate Healthcare’s clients have reported a $2 to $4 return for each dollar invested in a clinic. Employee participation often exceeds 90 percent.
“Over the past five years, we have built a strong regional network of primary care health clinics located within or near a workplace. Spring Mountain Capital’s investment will allow us to amplify those successes and take Activate Healthcare to the next level as we expand into new markets,” said Activate principal and co-founder Peter Dunn. “The on-site model represents the future of healthcare in America, and our clients routinely see their employees’ health improve while their insurance costs decrease. It’s a win-win for everyone involved.”
