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ALHAMBRA, Calif. and NEW YORK, Jan. 26, 2021 /PRNewswire/ -- Apollo Medical Holdings, Inc. ("ApolloMed") (NASDAQ: AMEH), a leading physician-centric, technology-powered healthcare management company, and CAIPA MSO, LLC ("CAIPA MSO"), a management services organization based out of New York, today announced a strategic alliance and investment by ApolloMed in CAIPA MSO.
CAIPA MSO provides management, consulting, administrative, and other support services to professional healthcare service providers, including to Chinese American IPA d/b/a Coalition of Asian-American IPA ("CAIPA"), a leading independent practice association serving the greater New York City area. With over 1,000 private practice providers covering over 70 specialties, CAIPA's provider network provides medical services and care to approximately 500,000 patients. CAIPA is consistently one of the top performing provider networks in the region in quality and value-based financial performance, and its wholly owned subsidiary CAIPA Care, LLC ("CAIPA Care"), is one of the only New York State Innovator Accountable Care Organizations, a value-based payment contracting designation by New York State that allows it to contract with payors at the most advanced payment levels to improve efficiencies and quality of care for patients.
Under the terms of the agreement, ApolloMed will purchase units of membership interest of CAIPA MSO, resulting in ApolloMed owning 30% of the post-closing total interests in CAIPA MSO on a fully diluted basis.
Combining ApolloMed's proprietary population health management and healthcare delivery platform with CAIPA MSO's deep experience in New York, this bi-coastal strategic alliance will produce synergies that will benefit patients, physicians and the greater healthcare industry in the United States. ApolloMed and CAIPA MSO are strongly aligned in their mission, which is to ensure that patients receive high-quality care in a cost-efficient manner, especially traditionally underserved populations and minority groups. Together, ApolloMed and CAIPA MSO will help healthcare providers deliver quality care to over 1.6 million patients nationwide, while reducing the overall cost of healthcare.
Kenneth Sim, M.D., Executive Chairman and Co-Chief Executive Officer of ApolloMed, stated, "Our strategic investment in CAIPA MSO marks ApolloMed's entry into the New York market and the first phase of our nationwide expansion plan. This strategic partnership enables us to continue building relationships that will position us to execute on future growth opportunities as we look to replicate the success of our business model across the country. We look forward to partnering with CAIPA MSO on growing their business and working together on our aligned mission of ensuring that patients, especially those traditionally underserved, receive the highest quality of care in the most cost-effective manner possible. This transaction is an important step forward in ApolloMed's strategy of continuing to scale its physician-led, tech-powered healthcare delivery platform nationwide, which we believe will deliver value for providers, patients, and our shareholders."
George Liu, M.D., Chairman of CAIPA MSO, and President and Chief Executive Officer of CAIPA, stated, "CAIPA MSO is very pleased to have found a partner in ApolloMed. We are confident that pairing CAIPA MSO's experience in management and administrative support services with ApolloMed's innovative technology and healthcare experience, while leveraging CAIPA's deep clinical expertise and best-in-class health professionals, will enable CAIPA MSO to scale quickly and effectively in the greater New York area and beyond. In collaborating with ApolloMed, CAIPA MSO is demonstrating its ongoing commitment to supporting and relieving the administrative burden placed on healthcare providers. We look forward to this strategic alliance further empowering the providers within our network to deliver quality care and a superior patient experience."
The transaction is subject to third-party consents and other customary closing conditions. ApolloMed will fund the transaction from cash on hand. This transaction is expected to close in the next three to six months.
About Apollo Medical Holdings, Inc.
ApolloMed is a leading physician-centric, technology-powered, risk-bearing healthcare management company. Leveraging its proprietary population health management and healthcare delivery platform, ApolloMed operates an integrated, value-based healthcare model, which aims to empower the providers in its network to deliver the highest quality of care to its patients in a cost-effective manner.
Headquartered in Alhambra, California, ApolloMed's subsidiaries include management services organizations ("MSOs"), affiliated independent practice associations ("IPAs") and a Next Generation Accountable Care Organization ("NGACO"). For more information, please visit www.apollomed.net.
About CAIPA MSO, LLC and Chinese American IPA, Inc. d/b/a Coalition of Asian-American IPA
Over the past 20 years, CAIPA continues to be a leading physician organization that delivers high-quality patient care in the most cost-effective manner in the greater New York City area. Headquartered in New York, New York, CAIPA's subsidiaries include CAIPA MSO, a management services organization, and CAIPA Care, a New York State Innovator ACO. For more information, please visit www.caipa.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as statements about ApolloMed's investment in CAIPA MSO, and ApolloMed's, CAIPA's, CAIPA MSO's, and CAIPA Care's growth, acquisition strategy, ability to deliver sustainable long-term value, ability to respond to the changing environment, operational focus, strategic growth plans and merger integration efforts, as well as the impact of the 2019 novel Coronavirus (COVID-19) pandemic on ApolloMed's, CAIPA's, CAIPA MSO's, and CAIPA Care's business, operations and financial results. Forward-looking statements reflect current views with respect to future events and financial performance and therefore cannot be guaranteed. Such statements are based on the current expectations and certain assumptions of ApolloMed's, CAIPA's, CAIPA MSO's, and CAIPA Care's management, and some or all of such expectations and assumptions may not materialize or may vary significantly from actual results. Actual results may also vary materially from forward-looking statements due to risks, uncertainties and other factors, known and unknown, including the risk factors described from time to time in ApolloMed's reports to the SEC, including, without limitation the risk factors discussed in ApolloMed's Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC and any subsequent quarterly reports on Form 10-Q.