Essence Group Holdings Corporation (EGHC) today announced that BlueCross BlueShield Venture Partners, managed by Sandbox Industries, has joined Kleiner Perkins Caufield & Byers and Camden Partners in a private investment in Essence.
“We are excited to have BlueCross BlueShield Venture Partners and Sandbox as new investment partners,” said W. Michael Long, chairman and chief executive officer of EGHC. “Our investment offering was oversubscribed, but this presented a unique opportunity to add such high-quality, industry-savvy new partners to our team. We are extremely pleased to expand our offering to $70 million to deliver the industry’s best accountable care technologies and services for transforming the U.S. health care system.”
Earlier this summer, EGHC raised $61 million. The $70 million of total capital raised represents one of the largest private sector investments in the accountable health care movement, and one of the nation’s 10 largest venture capital investments in the third quarter of 2011.
Most of the new capital will be invested in EGHC’s subsidiary Lumeris Corporation, a specialist in the software and services necessary to power next-generation accountable health care delivery systems. Its accountable care solutions drive unprecedented collaboration among health plans, hospitals, physicians and patients, and have been proven to increase the quality of care and lower health care costs while delivering higher patient and clinician satisfaction.
“We were impressed with the quality and scope of Lumeris’ solutions, the depth and experience of their management and the company’s recent successes with customers including a large Blue Cross and Blue Shield company,” said Matt Downs, managing director of Sandbox Industries. “Rarely do we see a firm with such capability so well-positioned to serve such a massive industry transformation as is happening in U.S. health care.”
John Doerr, senior partner at Kleiner Perkins, added: “We are very excited to partner with BlueCross BlueShield Venture Partners and the Essence management team to address the spiraling costs of health care. Together, we can solve this national problem while giving the American people — especially our seniors — the quality care they deserve.”
Based on years of experience building and operating accountable delivery systems, Lumeris has identified 22 core competencies essential to delivering accountable care. Through three market-leading offerings — Maestro, Maestro Plus and Tacklebox — Lumeris delivers all 22 competencies via one integrated framework that incorporates accountable decision management, coordinated care delivery, cultural and financial alignment and the operational excellence necessary for its payer, hospital and physician group customers to be leaders in accountable care.
A key component of Lumeris’ accountable care solution is Maestro, the health care industry’s leading Enterprise Performance Management System and a breakthrough in how health plans, hospitals and physicians use evidence-based decision support to make better clinical and financial decisions.
“We took a different approach to building a software and services company that delivers the tools and knowhow health care industry leaders need in their transition to accountable health care,” Long said. “For five years, we built and tested our solutions in our own accountable health care delivery system. We precisely measured the results achieved by hundreds of physicians and tens of thousands of patients. With such compelling results and the financial support of world class investors, we are now making our solutions available to payers, hospitals and physicians committed to delivering the best accountable care.”
EGHC, through its subsidiaries Lumeris and Essence Healthcare, serves the people who consume care, the professionals who provide care and the organizations that manage care. By innovating at the leading edge of collaboration, reimbursement, clinical informatics and information technology, EGHC and its subsidiaries help their clients thrive in a new era of value-driven health care.
Lumeris provides the critical technology, services, and expertise necessary to establish highly coordinated and accountable systems of health care. The innovative software provided by Lumeris helps health plans, hospitals, large medical groups, and other organizations connect, inform, and align stakeholders throughout the enterprise to drive value-based health care decisions. The consulting and operational services provided by Lumeris help organizations establish the necessary clinical and business processes, methodologies, and operational capacity to create their own successful accountable delivery systems. Learn more online at www.lumeris.com or by calling 1-888-LUMERIS 1-888-LUMERIS .
About BlueCross BlueShield Venture Partners, L.P.
BlueCross BlueShield Venture Partners, L.P., is a $116 million corporate venture fund sponsored by the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield companies. The fund invests in promising emerging companies of strategic relevance to Blue Cross and Blue Shield Plans. Through an exclusive arrangement, management of the Fund is shared between participating Blue Plans, the Blue Cross and Blue Shield Association, and Sandbox Industries. For more information, visit www.bcbsvp.com.
About Sandbox Industries
Sandbox Industries is a venture capital and business incubation firm located in Chicago. Sandbox is managed by leaders in identifying and commercializing novel ideas and technologies. The Sandbox team utilizes its network and unique combination of operational, strategic and financial expertise to provide access to customers, capital and connections when building market-leading companies. Sandbox is also the exclusive fund manager of BlueCross BlueShield Venture Partners. For more information, visit www.sandboxindustries.com.