7 June 2016Actuarial & underwriting

Hygea secure $140 million for growth and acquisitions

Hygea Holdings Corp and a consortium of US and international investment banks have agreed to terms in which the consortium is providing $40 million in funding to Hygea, with an additional $100 million credit facility available for the acquisitions of medical group practices and independent provider networks.

It used proceeds from the funding to acquire MedPlan, a major South Florida provider network, on February 24.

Manuel Iglesias, Hygea chief executive officer (CEO) and president, said: “Hygea’s new facility provided us with resources to realize significant growth already in 2016. Hygea intends to continue to grow through acquisitions, which will keep the Company in the vanguard of primary care delivery.”

According to Hygea, Gemini Health Care, the parent company of MedPlan and MedCare Medical Centers, will join the Hygea family with its 35,000 managed care members and 15 medical offices in Miami-Dade County, bringing the total Hygea locations to 30 medical offices in Miami-Dade, Broward, Palm Beach, Orange, Seminole, and Hillsborough counties, as well as in the greater Atlanta metropolitan area.

Iglesias added: “This acquisition makes us one of the largest individual primary care providers in the Southeast. Part of our mission is to offer a whole spectrum of insurance services, and this acquisition allows us to contract with multiple insurance companies, instead of being captive to one, so we can best serve our members.”

Iglesias also said services are provided to members and patients who are covered under commercial policies, Medicaid, Medicare, the ACA, discount medical plans, or are self-pay.