QuadMed, a subsidiary of Quad/Graphics, has announced that it will purchase Novia CareClinics and merge its executive management and operations teams accordingly.
The financial terms of the transaction were not disclosed; however, the deal is expected to close in the next 30 days.
Both companies operate in the field of employer-sponsored healthcare management and on-site primary care.
The transaction will enable the firms to offer the best of their respective models to a wider range of employers while improving access to quality healthcare at reduced costs.
The combined company will serve more than 150,000 patients in 90 clinics across 18 states and offer a broader range of healthcare solutions for employers of all sizes, including those with small or dispersed employee populations.
As part of the transaction, Novia CEO Eric Olson will become an executive at QuadMed, serving under its president, Tim Dickman.
QuadMed also intends to fully absorb Novia’s other employees into the combined company’s operations.
Dickman said the acquisition is a cultural and strategic fit that supports both companies’ vision for growth.
"Novia’s leadership in developing and managing onsite and shared primary care clinics for small to mid-size companies and the public sector complements QuadMed’s successful model of ground-breaking healthcare management solutions for larger companies with a national presence," Dickman added.
The combined company will maintain existing administrative support offices in Wisconsin as well as Indianapolis, where Novia CareClinics is based.
Olson said that QuadMed shares the company’s values and its philosophy of improving the quality of patient care while putting a strong focus on driving behavioural changes and controlling costs.
"We built our respective businesses independent of any competing interests that could have potentially detracted from our true purpose of keeping people healthy," Olson added.
The combined company will offer an expanded US geographic footprint that meets the healthcare needs of a wider range of employers, a broader range of services and customised employee-centric solutions at reduced costs.
A range of healthcare solutions will be available, including standalone clinics for employers with large concentrations of employees at single sites, shared clinics for multiple employers with smaller concentrations of employees in a geography, and corporate health suites with telemedicine capabilities for employers with limited real estate, small employee populations and/or dispersed workforces.
Quad/Graphics chairman, president and CEO Joel Quadracci said that the investment in Novia CareClinics will enable the company to build on QuadMed’s successful model.
"This investment will help us, as the parent company, better manage healthcare costs across our entire network of facilities, both large and small," Quadracci added.
"As a large employer with nearly 20,000 employees in 28 states, we can partner with other employers to create shared clinics, and continue to pass on what we’ve learned during our healthcare management journey."
The acquisition of Novia CareClinics is expected to boost value for Quad/Graphics as it will help broaden QuadMed’s offerings, strengthen its competitive position and drive the growth of its healthcare business.
Novia CareClinics operates 50 centre locations, serving more than 90 employers located throughout Indiana and four other states.