Landmark Health Explores Possible Sale

01/25/18 12:13 PM EST
By Laura Cooper 

Private equity-backed Landmark Health LLC is exploring a sale, potentially paving the way for its chief executive to take a leadership role at The Centers for Medicare & Medicaid Innovation, said people familiar with the situation.

Landmark -- which is backed by Francisco Partners, Oxeon Partners and McKesson Ventures -- provides home health-care for chronically ill patients.

The Huntington Beach, Calif., company is working with investment bank Barclays Capital LLC as it considers either a full or partial sale, said the people. The company is projected to generate about $53 million of earnings before interest, taxes, depreciation and amortization in 2018, up from about $15 million for 2017, the people said.

These people said Landmark's chief executive, Adam Boehler, is in the pole position to head the Center for Medicare and Medicaid Innovation, as previously reported by online political news website Politico. Mr. Boehler likely would need to divest his stake in the company before he can take the position to avoid conflicts given that Landmark receives Medicare and Medicaid reimbursements.

Landmark Health provides medical care to complex and chronically ill patients. Its services span behavioral health, social, medical and palliative care from doctors, nurses, social workers and pharmacists, among other professionals, according to the company's website. It provides services in Portland, Ore., New York City, Buffalo, N.Y. and in the Bay Area of California, among other areas.

The company is benefiting from a long-term trend of elderly people who prefer to "age in place" at home rather than enter a nursing home. According to the U.S. Census Bureau the population of people age 65 and older is projected to grow to 98.2 million by 2060, including 19.7 million that will be age 85 or older.

Francisco Partners, a San Francisco firm focused on technology investments, helped form the company alongside Mr. Boehler in 2013.

Oxeon Partners, of New York, helped recruit team members to build the company, including bolstering the company's human resources, hiring and onboarding operations in exchange for equity in Landmark, according to the health-care investor's website.

San Francisco-based McKesson Ventures, the venture-capital unit of McKesson Corp., lists Landmark as an active investment on its website.

Write to Laura Cooper at


(END) Dow Jones Newswires

January 25, 2018 12:13 ET (17:13 GMT)

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