“Doing Well” and “Doing Good”: Growing a Company and Serving Vital Senior Healthcare Needs
New Capital Partners founding partners James Outland and Jim Little have long histories as investors and operators in managed care. Through their experience providing solutions for employers and the federal government, they knew that certain vulnerable patient populations were vastly underserved. With Senior Whole Health, Outland saw an opportunity to provide better care to patients known as “Dual Eligibles,” Medicaid beneficiaries who are also eligible for Medicare.
Representing only 8% of the Medicare population but almost 30% of the healthcare expense in 2003, these low-income seniors were experiencing abysmal healthcare outcomes, and NCP and Senior Whole Health wanted to change that. Led by Outland, NCP negotiated a control investment in 2003, providing both the capital and the strategic management to build a thriving company that provided solutions for dual-eligible patients. Outland stepped in as interim CEO in 2004, and NCP helped build out a management team, including a CFO, COO and Chief Medical Officer, as well as a permanent CEO, John Baackes.
Senior Whole Health grew with Baackes at the helm. As CEO in the company’s third operational year, he recognized that a daring approach was needed both to break even financially and to prove to investors the company was on the right track. “I proposed a strategy that relied on enrollment of custodial care nursing home residents to meet that challenge. NCP was a cheerleader for the bold approach and helped rally support on the board for this move. We increased enrollment of custodial care members from 4% to 10%,” Baackes said.
Outland said, “The opportunity at Senior Whole Health was the opportunity to provide exceptional health care and social benefits to a vulnerable and at-risk population. As we were able to improve the health and quality of life of these seniors, we were able to grow the revenue of the company and serve more and more seniors.”
Under Baackes’s leadership and with support from NCP, Senior Whole Health achieved sustainable profitability and was able to provide exceptional health care benefits – as well as additional benefits, such as home care, meal delivery and transportation – to dual-eligible seniors. Senior Whole Health continued to grow rapidly, and in 2008, it was recognized as the #1 Fastest Growing Private Company in the United States by Inc. 500.
Outland said, “The greatest thing about Senior Whole Health was the opportunity to ‘do well’ and ‘do good’” through their work with the dual-eligible population. Baackes added, “I found NCP to be a strong partner in steering SWH to an outstanding reputation as a leader in care management for highly complex patients who were also living in poverty. It was an extraordinary experience.”