Tampa kidney care company gets eight-figure investment

A Tampa company focused on kidney health management has just gotten one of the largest private equity investments ever received by a local firm.

WindRose Health Investments LLC in New York recapitalized Healthmap Solutions Inc. with $85 million.

Healthmap uses healthcare analytics to power kidney health management services. It plans to use the new funding to expand nationwide, a news release said.

The $85 million for HealthMap tops other notable eight-figure investments received by local tech companies, including FairWarning’s $60 million from Mainsail Partners in June 2018 and A-LIGN’s $54.5 million from FTV Capital in July 2018. KnowBe4 received a “sizeable” minority investment, reportedly $50 million, in March 2019 from KKR.

Lower cost and better outcomes

Kidney disease impacts 30 million Americans, but 90 percent of people with chronic kidney disease don’t know they have the condition. The company said its kidney health management program has been proven to detect the disease state early, align primary and specialty care with evidence-based guidelines, and increase the use of home dialysis when appropriate.

Healthmap combines predictive analytics, care management expertise and direct patient support to lower costs and improve care outcomes, according to its website. It works with health plans, including Medicare Advantage and employer-sponsored plans, as well as accountable care organizations and provider groups.

“We are thrilled to be partnering with Healthmap,” Oliver Moses, managing partner with WindRose, said in the news release. “We have evaluated many businesses in this sector and have identified Healthmap as the premier platform. The Healthmap team has created a differentiated solution in an area of increasing focus for health plans, at-risk providers and self-insured employers. We look forward to supporting the company’s continued growth.”

WindRose manages over $1.4 billion of capital and recently closed its fifth fund, with $705 million in commitments.  Previous local investments by WindRose include Florida Gulf-to-Bay Anesthesiology in Tampa and Senior Home Care in Clearwater.

“Financial backing from an investor of WindRose’s stature and expertise provides the extra strategic insights and capital required for us to accelerate our growth and to assume the financial risk of reducing the cost of care for those suffering from complex kidney health conditions,” said Joe Vattamattam, CEO of Healthmap. “We expect to provide these services in 12 states in 2020, and to continue to expand from there with a geographic expansion strategy that enables us to have an even deeper positive impact on the kidney population.”

Connections

Healthmap previously received $5.6 million in a venture round of funding in December 2017, according to Crunchbase.

In addition to Vattamattam, other Healthmap leaders are Andrew Wall, chief operating officer and founder; Dr. Elizabeth Prence, chief clinical quality officer; and Kisha Thompson, vice president of human resources.

Vattamattam previously worked at WellCare Health Plans (NYSE: WCG) in Tampa and at CareCentrix, a Hartford, Connecticut-based post-acute managed care company with an office in Tampa.

The co-chairmen of Healthmap’s board of directors — Steven Shulman and Eric Reimer —  also are tied to CareCentrix. Shulman chairs the CareCentrix and is managing partner of Shulman Family Ventures, a private equity firm. Reimer is the former CEO of CareCentrix.

Other Healthmap board members are Ari Benacerraf, a partner and member of the investment committee at Five Arrows Capital Partners, the U.S. middle-market private equity business of Rothschild Merchant Banking; and Bruce Lucas, chairman and CEO of Heritage Insurance Holdings (NYSE: HRTG) in Clearwater.

Vattamattam serves on the Heritage Insurance board.