ALHAMBRA, Calif., Nov. 7, 2023 /PRNewswire/ -- Apollo Medical
Holdings, Inc. ("ApolloMed," and together with its subsidiaries and
affiliated entities, the "Company") (NASDAQ: AMEH), a leading
physician-centric, technology-powered healthcare company focused on
enabling providers in the successful delivery of value-based care,
today announced that it and its affiliated professional entity have
entered into a definitive agreement to acquire assets relating to
Community Family Care Medical Group IPA, Inc. ("CFC"), including
the CFC independent physician association ("IPA"), the CFC Health
Plan ("HP") and CFC's management services organization ("MSO")
entities.
CFC's scaled provider group, with more than 350 primary care
physicians and 500 specialists on platform, manages the healthcare
of over 200,000 members in the Los
Angeles, California area. The group serves patients across
Medicare, Medicaid, and Commercial payers. CFC, which became an
ApolloMed Care Enablement client in 2020, has a Restricted Knox
Keene ("RKK") license for Medicaid members, and will seamlessly
integrate as an ApolloMed Care Partner as it continues to utilize
our Care Enablement platform.
Brandon Sim, Co-CEO of ApolloMed,
stated, "We're incredibly excited to announce our acquisition of
CFC, a scaled, unique network of mission-driven providers with a
long track record of strong performance, especially in the Medicaid
market in Los Angeles. We believe
that pairing CFC's impressive track record and clinical
capabilities with ApolloMed's scaled value-based care platform will
result in even better outcomes for those we serve. We also
anticipate that CFC's demonstrated ability to take full risk
successfully in Medicaid with its RKK license will allow us to
increase our ability to manage a person's total health across our
entire Medicaid business. Importantly, this acquisition of an
existing client shows the value and synergy of leveraging both our
Care Enablement and Care Partners business segments, transitioning
from a vendor-client relationship into one in which we are
responsible for the total cost of care of their scaled membership
base in a de-risked and accretive manner. We believe that our
partnership with CFC and its providers demonstrates our deep
commitment to delivering accessible, high-quality, and high-value
healthcare to local communities across Los Angeles."
Dr. Accie Mitchell, CEO of CFC,
commented, "We are pleased to strengthen our existing relationship
with ApolloMed through this transaction, which is a natural
progression towards the continued growth and success of CFC.
Leveraging ApolloMed's Care Enablement solution has empowered our
physicians to deliver better care and enabled the company to
deliver a multi-year, growing track record of profitability while
managing Medicaid populations under value-based care contracts. We
are incredibly excited for the next chapter of CFC's growth and
success in serving those who most need it across Los Angeles and beyond."
For 2023, CFC as a whole is expected to generate approximately
$190 million in revenue. CFC's
adjusted EBITDA for the full year is expected to be approximately
$25 million, reflecting a margin of
approximately 13%.
Additional details regarding ApolloMed's acquisition of CFC can
be found on the Company's Investor Relations website.
Transaction Summary
Under the terms of the agreement, subject to satisfaction of
customary conditions, the purchase price of $202 million is made of $152 million of cash on hand, subject to
customary adjustments, $20 million of
equity in ApolloMed stock, and up to $30
million in performance-based milestone payments.
ApolloMed's acquisition of the CFC IPA is expected to close in
Q1 2024. The acquisition of the CFC HP and the MSO entities are
expected to close by the end of Q1 2024, subject to regulatory
approval.
Advisors
Sheppard, Mullin, Richter & Hampton LLP
is serving as legal counsel for CFC. Russ
August & Kabat LLP and Nossaman LLP are serving as legal
counsel for ApolloMed.
About Apollo Medical Holdings, Inc.
ApolloMed is a leading physician-centric, technology-powered,
risk-bearing healthcare management company. Leveraging its
proprietary end-to-end technology solutions, ApolloMed operates an
integrated healthcare delivery platform that enables providers to
successfully participate in value-based care arrangements, thus
empowering them to deliver high quality care to patients in a
cost-effective manner.
Headquartered in Alhambra,
California, ApolloMed's subsidiaries and affiliates include
management services organizations (MSOs), affiliated independent
practice associations (IPAs), and entities participating in the
Centers for Medicare & Medicaid Services Innovation Center
(CMMI) innovation models. For more information, please
visit www.apollomed.net.
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 the Company's operational focus and
strategic growth plans. 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 the Company'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
the Company's reports to the Securities and Exchange Commission
("SEC"), including without limitation the risk factors discussed in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2022, filed with the SEC
and any subsequent quarterly reports on Form 10-Q.
FOR MORE INFORMATION, PLEASE CONTACT:
Investor
Relations
Asher Dewhurst
investors@apollomed.net
View original content to download
multimedia:https://www.prnewswire.com/news-releases/apollo-medical-holdings-inc-announces-definitive-agreement-to-acquire-assets-of-community-family-care-medical-group-ipa-inc-and-health-plan-301980676.html
SOURCE Apollo Medical Holdings, Inc.
