InterWell Health, Cricket Health, and Fresenius Health Partners Complete Three-Way Merger, Creating Premier, Value-based Kidney Care Provider
Combined entity will operate under the InterWell Health brand, and expects to be responsible for more than 270,000 covered lives and $11 billion in costs under management by 2025
Uniquely positioned to deliver strong physician leadership and leading-edge care management and technology to improve outcomes for chronic kidney disease patients and reduce costs to payers and the overall healthcare system
Cambridge, Mass. – August 24, 2022 – InterWell Health today announced it has completed a three-way merger between Fresenius Medical Care’s value-based care division, Fresenius Health Partners; InterWell Health, a leading physician organization driving innovation in the kidney care industry; and Cricket Health, a provider of value-based kidney care with an industry-leading patient engagement and data platform. The new independent company, which will operate under the InterWell Health brand, will set the standard in value-based kidney care by partnering with a patient’s nephrologist, improving their care delivery throughout the entire spectrum of their journey with kidney disease. With extraordinary capabilities, expertise, and reach, the new company expects to improve health outcomes for individuals with kidney disease and reduce costs to public and private payers, health systems, and all others that take risk for this vulnerable and complex patient population. The transaction has satisfied customary closing conditions and received regulatory clearance in the U.S.
The completed merger, first announced in March 2022, positions the new InterWell Health to engage and manage the care of more than 270,000 individuals living with kidney disease in the U.S. It expects to have $11 billion in costs under management by 2025, an increase from 100,000 covered lives and $6 billion currently under management.
“In a value-based world, it is no longer enough just to provide quality care – providers must help patient change behavior, and this requires a fundamental shift in how we engage patients,” said InterWell Health CEO, Robert Sepucha. “The new InterWell Health is bringing together cutting-edge data analytics capabilities that identify high-risk patients with the industry’s leading patient engagement platform to deliver a rich in-person and virtual experience where they can immerse themselves in information about their disease. At the same time, we offer real-time access to multidisciplinary care teams, patient peer mentors, as well as the largest network of nephrologists in the country, to help patients live their best lives. Working closely with our physician partners, we will reduce hospital admissions and readmissions, increase transplant referrals and rates, accelerate the transition to home dialysis, and improve health equity.”
The company will utilize its StageSmart™ machine learning and predictive glomerular filtration rate (GFR) model (known as pGFR™). This transformative technology will enable the combined entity to identify and risk stratify patients with kidney disease prior to kidney failure with 96 percent accuracy, helping slow disease progression and giving patients the time necessary to choose a treatment option that is right for them. Through the company’s web-based patient engagement platform, InterWell Health intends to grow its reach across the U.S., providing patients with a deeply immersive and transformative experience with their care teams.
“In order to best support patients with kidney disease, the new InterWell Health puts nephrologists at the center of our efforts, including as investors and as members of our Board of Directors and Clinical Committees. By partnering with InterWell Health, physicians will obtain the resources they need to provide superior care, manage disease progression, and improve outcomes,” said InterWell Health Chief Medical Officer, Dr. George Hart. “We are focused on helping patients better navigate the complex and fragmented care delivery system through the identification of opportunities to keep them upstream for longer and ensure that those already living with kidney disease are the biggest beneficiary of this exciting endeavor.”
The new InterWell Health is a standalone entity backed by leading investors, including: Fresenius Medical Care; Valtruis, a WCAS company; Oak HC/FT; Cigna Ventures; and Blue Shield of California. InterWell Health has the financial flexibility to strategically invest and scale, with the ability to explore adjacent value-based care opportunities.
“The combination of Cricket Health with Fresenius Health Partners and InterWell Health creates a truly comprehensive, value-based kidney care offering and benefits all stakeholders, including patients and physicians,” said Tracy Bahl, Managing Director at Valtruis. “The Valtruis team has been inspired by Cricket Health’s growth and innovation throughout our partnership thus far, and we are excited to witness the acceleration of this progress by the new InterWell Health.”
Ernst & Young Capital Advisors, LLC served as financial advisor and Goodwin Procter LLP served as legal counsel to InterWell Health. Piper Sandler & Co. served as financial advisor and Cleary Gottlieb Steen & Hamilton LLP served as legal counsel to Fresenius Medical Care. Barclays served as financial advisor and Perkins Coie LLP served as legal counsel to Cricket Health. Ropes & Gray served as legal counsel to Valtruis and WCAS.
Additional information can be found at www.TransformingKidneyCare.com.
About Interwell Health
Interwell Health is a physician-centered organization dedicated to transforming the future of kidney care in the U.S. by improving the health outcomes and quality of life of people living with chronic kidney disease. The company is differentiated by its ability to deliver improved clinical outcomes and better quality of life for patients, reduce the total cost of care for payer partners, and provide the resources physicians need to thrive in a value-based world – all at scale. Learn more, visit at https://www.interwellhealth.com/.
SOURCE Interwell Health