ERIE, Pa., Dec. 8 /PRNewswire/ -- Ion Health Holdings, Inc., based in western Pennsylvania, today announced it has received a commitment for an additional $200 million in private equity funding. The commitment is believed to be the largest single investment of its kind in a Medicaid managed healthcare company.
The transaction has been approved by the Pennsylvania Department of Insurance. The money raised will be used to fund the continued expansion of Ion Health, Pennsylvania’s newest Medicaid managed care organization. Ion Health’s growth, both throughout the state of Pennsylvania as well as in other states, will be conducted in cooperation with, and with approval from, state regulatory agencies.
The additional funding is being provided by J.W. Childs Associates, L.P., a leading private equity firm, based in Boston. Since 1995, JWC has invested in 34 companies with a total transaction value of $7.8 billion, and currently invests through its J.W. Childs Equity Partners III, L.P., an investment fund with committed capital of $1.75 billion from leading financial institutions, pension funds, insurance companies and university endowments.
Ion Health Founder and Chief Executive Officer Anthony Horbal and Ion Health President Mike Nelson retain their seats on the company’s Board of Directors. In addition, both Horbal and Nelson have signed long-term employment agreements to remain with the company in their current executive roles.
The company previously reported it had closed on an initial capital round of $13.5 million, which has been used to fund Ion Health through its beginning phases. Ion Health currently employs more than 60 people across four Pennsylvania counties; that number is expected to grow dramatically as it expands its operations.
From its inception, Ion Health’s objective has been to help Medicaid recipients in the areas it serves access a full range of high-quality healthcare benefits, specifically designed to provide a greater level of access and service at lower cost to taxpayers.
“Ion Health has achieved significant progress in a relatively short time; the new investment will enable it to continue its rapid rate of growth, providing the Commonwealth’s taxpayers with tangible benefits,” said Pennsylvania Governor Ed Rendell. “These benefits include additional, well- paying jobs throughout the state and a higher level of healthcare for Medicaid-eligible men, women and children who are Ion Health members. In the end, this helps everyone.”
“We have been consistently focused on keeping our members healthy, and improving their quality of life,” said Horbal. “The increased funding allows us to expand that focus, and gives us the sound financial footing to reach out and make those services available to a far greater population. We are committed to building the best Medicaid managed healthcare plan in the markets we serve; Childs’ investment brings us one giant step closer to fulfilling our goals.”
Ion Health Holdings, Inc.
CONTACT: Steve Friedberg, MMI Communications, +1-610-518-7474,steve@mmicommunications.net, for Ion Health Holdings