CFC's scaled provider group, with over 350 primary care physicians and 500 specialists on platform, manages the medical care of over 200,000 members in Los Angeles, California
Apollo Medical to acquire assets relating to Community Family Care Medical Group IPA. (Credit: Ante Samarzija on Unsplash)
Apollo Medical, together with its subsidiaries and affiliated entities, have agreed to acquire assets relating to Community Family Care (CFC) Medical Group IPA, including the CFC independent physician association (IPA), the CFC Health Plan (HP) and CFC’s management services organisation (MSO) entities.
CFC’s scaled provider group, with over 350 primary care physicians and 500 specialists on the platform, manages the medical care of over 200,000 members in Los Angeles, California.
The group serves patients across Medicaid, Medicare and commercial payers.
Under the terms of the agreement, the purchase price of $202m is subject to the satisfaction of usual conditions.
It is composed of $152m in cash on hand, subject to customary adjustments, $20m in equity in ApolloMed stock, and up to $30m in performance-based milestone payments.
Apollo Medical co-CEO Brandon Sim said: “We’re incredibly excited to announce our acquisition of CFC, a scaled, unique network of mission-driven providers with a long track record of strong performance, especially in the Medicaid market in Los Angeles.
“We believe that pairing CFC’s impressive track record and clinical capabilities with ApolloMed’s scaled value-based care platform will result in even better outcomes for those we serve.
“We also anticipate that CFC’s demonstrated ability to take full risk successfully in Medicaid with its RKK license will allow us to increase our ability to manage a person’s total health across our entire Medicaid business.”
CFC became an ApolloMed Care Enablement client in 2020 with a Restricted Knox Keene (RKK) license for Medicaid members.
CFC CEO Accie Mitchell said: “We are pleased to strengthen our existing relationship with ApolloMed through this transaction, which is a natural progression towards the continued growth and success of CFC.
“Leveraging ApolloMed’s Care Enablement solution has empowered our physicians to deliver better care and enabled the company to deliver a multi-year, growing track record of profitability while managing Medicaid populations under value-based care contracts.”
The CFC IPA purchase by ApolloMed is anticipated to close in the first quarter of 2024.
The acquisition of the MSO and CFC HP companies is anticipated to close by the end of Q1 2024, subject to regulatory approval.
CFC is represented by Sheppard, Mullin, Richter & Hampton as legal counsel. ApolloMed is legally represented by Russ August & Kabat and Nossaman.