Kelsey-Seybold Clinic, the nation’s first Accredited Accountable Care Organization recognized by the National Committee for Quality Assurance (NCQA), announced a strategic partnership Jan. 21 with TPG Capital, the private equity platform of global alternative asset firm TPG.
TPG Capital made a non-controlling, strategic investment in Kelsey-Seybold Management Services, the management services organization serving the Kelsey-Seybold Medical Group. Kelsey-Seybold’s physician leadership maintains local control of the organization in the partnership, Kelsey-Seybold said in the news release.
The partnership provides Kelsey-Seybold with additional capital and strategic expertise to help accelerate the growth and expansion of its Accountable Care Organization and care delivery model to more geographic locations and partners in the Greater Houston area.
Kelsey-Seybold Medical Group remains 100 percent physician-owned and physician-governed. Additional terms of the partnership were not disclosed.
“It was important to find the right partner to help us grow our Accountable Care model, while valuing the aspects of our culture and legacy that have led us to be one of the leading Accountable Care Organizations in the nation,” Tony Lin, MD, Chairman and Managing Director of Kelsey-Seybold, said in the announcement.
Since 2013, Kelsey-Seybold has added or expanded 16 clinic locations. The organization has multiple expansions and openings planned in 2020.
“We have a long-standing focus on partnering with companies and management teams that offer high-quality, value-centric solutions to the healthcare ecosystem,” said Jeff Rhodes of TPG Capital. “Kelsey-Seybold is a leading physician group with a demonstrated ability to provide comprehensive, personalized care at a lower total medical cost through its unique Accountable Care model.”
Over the coming months, Kelsey-Seybold and TPG Capital will implement a plan for strategic areas of growth, the news release said.
Kelsey-Seybold’s strategy will focus on access to preventive care as the gateway to improved health outcomes, and the expansion of its primary and specialty care offering to accommodate increased demand in the marketplace.
Headquartered in San Francisco and Fort Worth, Texas, TPG is one of the most experienced investors in the healthcare industry.
Evercore served as an advisor to Kelsey-Seybold in this transaction. William Blair and J.P. Morgan served as financial advisors to TPG Capital.
Kelsey-Seybold Clinic was founded in 1949 by Dr. Mavis Kelsey in Houston’s Texas Medical Center. More than 450 physicians and allied health professionals practice at 23 locations in the Greater Houston area.
KelseyCare Advantage, a Medicare Advantage plan offered to Houston-area beneficiaries and affiliated with Kelsey-Seybold Clinic, has achieved the coveted 5-out-of-5-star rating from the Centers for Medicare and Medicaid for four consecutive years and is the only 5-out-of-5-star rated plan in Houston.
Kelsey-Seybold has been recognized by the National Committee for Quality Assurance (NCQA) as the nation’s first accredited Accountable Care Organization and a Level 3 (highest) Patient-Centered Medical Home, the clinic said in the news release.