Better Health Group Secures $175 Million in Growth Capital on top of initial $500 million investment to fund continued national expansion
TAMPA, Florida, November 14, 2023 – Better Health Group, one of the largest value-based care provider networks in the country with over 1,200 owned and affiliated providers, closed on $175 million in growth-capital financing. The funding will support new risk-based payor partnerships, strategic acquisitions as the company expands operations to new states, and continued openings of de novo clinics.
The latest round of financing follows a $500 million equity investment from Kinderhook Industries in December 2021. Over the 22 months since, Better Health Group has grown rapidly while delivering consistent profitability and 5-star quality results. It doubled its patient base to more than a quarter million, doubled the size of its provider network, and tripled the number of company-owned medical centers. Over the past year, Better Health Group generated $1.2 billion in revenue through its operations across eight states and Puerto Rico.
“Our payor, provider, and investment partners recognize our long track record of success running a scalable, value-based care organization,” said Mike Polen, CEO of Better Health Group. “Since inception, the company has generated consistent profitability and industry-leading care quality. We’ve done so by relying on close collaboration with our provider partners and through comprehensive care management that emphasizes early disease detection and prevention. The approach helps our patients achieve better health, enables our providers to deliver higher quality and more personalized care, and gives our payor partners greater financial stability. In short, we’re providing real value-based care.”
The company’s unique, two-pronged offering has attracted 575 new providers to the Better Health Group network since 2022. These providers can maintain ownership of their practices and partner with Better Health Group’s MSO and ACOs, or they can work as employees at one of its 162 company-owned medical centers.
“Almost 90% of our providers deliver savings in value-based arrangements while also achieving the highest quality scores,” said Chris Michalik, managing director at Kinderhook Industries. “BHG’s results speak for themselves.”
“Over the past two years, we have shown the healthcare industry that not only does our model work, but it’s also scalable,” said Sidd Pagidipati, Better Health Group’s founder and chairman. “With only one in five primary care providers participating in risk-based value-based care arrangements, we see enormous opportunity to help providers across the country earn more by delivering better care to their patients.
About Better Health Group
Founded in 2006 and headquartered in Tampa, Florida, Better Health Group is leading the transition to value-based primary care. Operating in eight states and Puerto Rico, Better Health Group manages care for more than 250,000 patients enrolled in Medicare Advantage plans, Medicare ACOs, Managed Medicaid, and Commercial Insurance plans. The company’s business lines deliver Better Care, Better Outcomes, and Better Health.