Landmark Health Explores Possible Sale
January 25 2018 - 12:28PM
Dow Jones News
By Laura Cooper
Private equity-backed Landmark Health LLC is exploring a sale,
potentially paving the way for its chief executive to take a
leadership role at The Centers for Medicare & Medicaid
Innovation, said people familiar with the situation.
Landmark -- which is backed by Francisco Partners, Oxeon
Partners and McKesson Ventures -- provides home health-care for
chronically ill patients.
The Huntington Beach, Calif., company is working with investment
bank Barclays Capital LLC as it considers either a full or partial
sale, said the people. The company is projected to generate about
$53 million of earnings before interest, taxes, depreciation and
amortization in 2018, up from about $15 million for 2017, the
people said.
These people said Landmark's chief executive, Adam Boehler, is
in the pole position to head the Center for Medicare and Medicaid
Innovation, as previously reported by online political news website
Politico. Mr. Boehler likely would need to divest his stake in the
company before he can take the position to avoid conflicts given
that Landmark receives Medicare and Medicaid reimbursements.
Landmark Health provides medical care to complex and chronically
ill patients. Its services span behavioral health, social, medical
and palliative care from doctors, nurses, social workers and
pharmacists, among other professionals, according to the company's
website. It provides services in Portland, Ore., New York City,
Buffalo, N.Y. and in the Bay Area of California, among other
areas.
The company is benefiting from a long-term trend of elderly
people who prefer to "age in place" at home rather than enter a
nursing home. According to the U.S. Census Bureau the population of
people age 65 and older is projected to grow to 98.2 million by
2060, including 19.7 million that will be age 85 or older.
Francisco Partners, a San Francisco firm focused on technology
investments, helped form the company alongside Mr. Boehler in
2013.
Oxeon Partners, of New York, helped recruit team members to
build the company, including bolstering the company's human
resources, hiring and onboarding operations in exchange for equity
in Landmark, according to the health-care investor's website.
San Francisco-based McKesson Ventures, the venture-capital unit
of McKesson Corp., lists Landmark as an active investment on its
website.
Write to Laura Cooper at laura.cooper@wsj.com
(END) Dow Jones Newswires
January 25, 2018 12:13 ET (17:13 GMT)
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