Direct primary care provider Everside Health and employer health provider Marathon Health are merging to offer primary care with offerings for patients, employees and union-sponsored clients utilizing a value-based care model.
Everside works with employers and unions to offer healthcare directly to their workers without an insurer middleman. It includes health centers and virtual care and offers primary care, chronic condition management, mental health services, urgent care, occupational health and care coordination.
Marathon Health is an employer-sponsored primary care company that provides onsite care services where employees work and 24/7 virtual care services. The company also offers care navigation resources and a comprehensive care team.
The combined entity, which will work under the Marathon Health brand name, said it would offer its 630 clients primary care, occupational health, mental health, pharmacy and musculoskeletal services. It said it will reach 2.5 million patients across 680 health centers in 41 states and virtually in all 50 states.
Marathon Health’s CEO, Dr. Jeff Wells, and executive chairman, Ben Evans, will continue in their existing roles.
Everside Health’s CEO Chris Miller is leaving the company but will remain a shareholder of the combined business.
The merger will be completed within the next 12 months, and existing shareholders General Atlantic, New Enterprise Associates and Oak HC/FT will support the combined entity.
“The merger of Marathon Health and Everside Health will create a stronger combined organization even better equipped to build a primary care model designed with patient experience and outcomes in mind,” Wells said in a statement.
“Alongside my fantastic colleagues, I am honored to lead the newly merged Marathon Health because our mission to enable millions of people to live their healthiest lives has never been more critical. Our track record reflects our success in gaining the trust and loyalty of our clients, patients, and communities nationwide.”
THE LARGER TREND
Everside, formerly Paladina Health, was sold to NEA by dialysis company DaVita for $100 million in 2018. NEA also led a $165 million raise for the company that year.
In 2022, Everside scored $164 million in growth equity funding.
The direct primary care company has made several acquisitions, including its purchase of Activate Healthcare in 2019, which offered services to employers and unions for preventive and primary care.
It purchased another direct provider, Healthstat, in 2020 and announced an agreement to acquire R-Health in 2021.
Everside announced plans to go public in 2021, but shortly after, it wrote a letter to the Securities and Exchange Commission scrapping its plans “due to market conditions.”
In 2020, Marathon Health merged with OurHealth, a company offering employers onsite and near-site health centers. Two years later, the company “restructured” and cut 94 jobs or about 6% of its workforce.
Last year, the Indianapolis-based company acquired Cerner Workforce Health Solutions, created by Cerner Corp. With the addition of Cerner WHS clients, members, care teams and associates, Marathon expanded its value-based care population health management footprint in 15 states.
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