GlobalHealth, an Oklahoma-based health maintenance organization, today announced it has entered into a definitive agreement to create a partnership in the Medicare Advantage (MA) plan marketplace with Evolent Health, a company providing an integrated value-based care platform to the nation’s leading providers and payers. Together, both companies will launch and scale MA health plans under the True Health brand in targeted geographies.
True Health Medicare Advantage (MA) Marketplace Details
The newly established joint venture will be anchored by GlobalHealth, a health plan founded in 2003 and based in Oklahoma City that provides insurance coverage to approximately 13,000 MA and approximately 18,000 government employees throughout the state of Oklahoma. Consistent with GlobalHealth and Evolent’s focus on provider-driven value-based care, True Health’s MA product will target partnerships with high-performing providers that are prepared to take a delegated risk for MA populations. The combined assets will support continued growth for GlobalHealth in Oklahoma, as well as the scalable launch and operations of several new MA health plans under the True Health brand for 2020, 2021 and beyond.
Value Proposition for True Health
For Evolent, True Health represents a strategic opportunity to enable its active participation in the growing MA market, particularly in geographies where providers seek a new payer “value” model that does not exist in their market today. With the scale of GlobalHealth as an anchor health plan, Evolent can now support these providers while limiting its financial exposure and capital requirements going forward.
Financial Details of Partnership
Under the terms of the agreement, the existing equity owners of GlobalHealth (which include an affiliate of Kinderhook Industries, LLC) will contribute GlobalHealth and additional cash in exchange for a 55 percent ownership position in True Health. Evolent will own a 45 percent minority stake and is contributing $37.5 million of capital comprised of $15 million in cash and $22.5 million in stock, in addition to new provider agreements pertaining to its True Health MA line of business. These organizations bring a unique provider orientation and expert leadership in managing health plan operations, clinical innovation, and consumer engagement.
“GlobalHealth was founded by a group of physicians committed to delivering the best health care coverage in the industry,” said GlobalHealth President and Chief Executive Officer Scott Vaughn. “Today, our passion for working with providers to introduce innovative and affordable solutions to the market is stronger than ever. We are excited to partner with Evolent Health and their expansive network of providers to grow geographically beyond Oklahoma.”