WEST SENECA, N.Y., April 14 /PRNewswire/ -- Prism Health Networks secured an infusion of capital from the private equity fund manager Summer Street Capital Partners LLC, which will finance job creation, acquisitions and national expansion by the provider of outsourced managed-care services for muscular-skeletal health, including physical therapy, chiropractic medicine, and fitness and wellness.
Terms of the transaction were not disclosed, though Summer Street uses its aggregate $300 million under management to make equity investments that typically range from $5 million to $30 million in companies with annual revenues of $20 million to $100 million.
Prism currently counts more than 15 major health plans as customers, including the largest in each of New York City, Upstate New York and Florida. Health-plan customers rely on Prism's quality-, disease-, and utilization- management programs and claims administration services to reduce health care costs by improving health-plan members' long-term muscular-skeletal health.
Prism's expansion plans include creating at least 25 new jobs at its West Seneca headquarters by 2010. Currently the company employs about 90 people in Upstate New York and Florida.
"Prism succeeds when we simplify the complexities of managing muscular- skeletal health for our customers, clinicians and patients," the company's President and Chief Executive Officer Paul J. Candino said. "With Summer Street's investment and expertise, we intend to expand the company nationally through organic growth and acquisitions, making Prism synonymous with muscular-skeletal health."
A portion of the new capital has already been used to help finance Prism's recent purchase of Chiropractic Alliance Corporation of Tampa. Summer Street's investment is expected to fund future acquisitions by Prism, as well as the workforce expansion and new service offerings for health-plan customers nationwide.
"We're investing alongside a very talented management team with tremendous industry expertise," Summer Street Managing Partner Brian D'Amico explained. "They've built a business model that we believe has outstanding growth potential, and we're very pleased to help finance this promising company's expansion plans."
Members of Prism's management team remain major shareholders of the company. In addition to CEO Paul Candino, they include Prism Chairman and Chief Clinical Officer Kevin E. Cichocki, DC and Executive Vice President and Chief Operating Officer Mark Zygaj. In conjunction with the transaction, the three Prism executives were joined on the company's new seven-member board of directors by:
"Prism's non-executive directors have nationally recognized health care industry expertise and records of success as entrepreneurs, deal-makers and business leaders that is rarely found on the board of a company our size," Candino said. "I believe the ability to attract these directors to our board is evidence of Prism's excellent prospects and growth potential."
Prism's mission is to provide the best access for clinically excellent and affordable muscular-skeletal health. Headquartered in West Seneca, N.Y., the integrated muscular-skeletal health services company provides health-plan customers with outsourced managed-care services for physical therapy, chiropractic medicine, and fitness and wellness. Health-plan customers rely on Prism's quality-, disease-, and utilization- management programs and claims administration services to reduce health care costs by improving health-plan members' long-term muscular-skeletal health. The company is a registered utilization review agent with URAC accreditation in Health Network and Health Utilization Management Standards. More information on Prism may be found at www.prismnetwork.com.
About Summer Street Capital Partners LLC
Summer Street Capital Partners LLC, founded in 1999, is a Buffalo, N.Y.-based private equity fund with approximately $300 million of committed capital focused on investing in small-market companies. The firm invests alongside talented managers, bringing capital and resources to support acquisitions and aggressive growth strategies. Summer Street's investors include leading pension funds, insurance companies and banking institutions. Summer Street's investments support management buy-outs, family transitions, corporate divestitures, growth financings and recapitalizations. The investment team is complimented by a team of experienced operating partners who are integrally involved in assisting portfolio companies. Please visit www.summerstreetcapital.com for additional information.
FOR MORE INFORMATION CONTACT:
Jeffrey A. Schoenborn for Prism and Summer Street
716-842-2222 or [email protected]
SOURCE Prism Health Networks