Healthcare Industry News: Diversified Clinical Services
News Release - April 26, 2006
Diversified Therapy and Praxis Clinical Services Merge to Create the Country’s Leading Wound Care Management CompanyThe merger brings together two of the country’s top wound care management organizations, combining clinical expertise, research, data systems and experienced staff to gain greater scale and resources. Diversified Clinical Services will be the largest outpatient wound care management company in the U.S., with more than 150 wound care programs at hospitals nationwide.
Jacksonville, FL and Tustin, CA--(HSMN NewsFeed)--April 26, 2006 -- Jim Henry, President and CEO of Diversified Therapy, and Jack Rollins, President and CEO of Praxis Clinical Services, announced today that the two companies will merge and operate as Diversified Clinical Services, Inc. Jim Henry will hold the role of CEO and Jack Rollins will be President of the new and larger enterprise.
The merger brings together two of the country’s top wound care management organizations, combining clinical expertise, research, data systems and experienced staff to gain greater scale and resources. Diversified Clinical Services will be the largest outpatient wound care management company in the U.S., with more than 150 wound care programs at hospitals nationwide.
The annual cost of treating patients in the U.S. with problem wounds is estimated at more than $16.0 billion and is growing. There are several factors contributing to the expanding need for specialized wound care, including more cases of diabetes, an aging population and the effects of radiation therapy. “The demand for comprehensive wound care services from hospital administrators, physicians and patients continues to grow each year,” explained Jim Henry, Henry added, “Combining resources with Praxis ensures that we’re able to meet this growing need while continuing to provide the highest levels of clinical expertise and customer service for both our existing and future wound care programs.”
“Hospitals today clearly recognize the value of outsourcing services to expert providers,” observed Jack Rollins. He went on to say, “This merger gives us added resources and scale to provide turnkey wound care programs with an unsurpassed level of expertise. Additionally, as a result of the merger, our expanded organization and national network of partners will allow us access to important clinical information on chronic wounds. This will result in new research, additional value-add services and enhanced wound care education and training for our medical and clinical teams.”
Both Diversified Therapy and Praxis Clinical Services experienced healthy growth in 2005. Combined, the companies treated nearly 40,000 patients in 2005 and provided a total of more than 300,000 patient visits for the year. Additionally, both companies report healing rates for wound care patients in excess of 85 percent and patient satisfaction ratings that exceed 98 percent.
The merger of Diversified Therapy and Praxis Clinical Services is being funded by three private equity firms, which include The Jordan Company, LP, The Edgewater Funds, and Bolder Capital.
About Diversified Therapy
Established in 1996, Diversified Therapy manages comprehensive wound care centers at more than 80 contracted hospitals in 25 states nationwide, allowing hospitals to provide a needed value-added service to a growing patient population. Diversified Therapy plans, develops and manages wound care centers, providing implementation guidelines, key staff, operating procedures, clinical algorithms, outcomes data tracking systems, education and billing and coding training. Diversified Therapy is headquartered in Jacksonville, Florida. More information is available at www.diversifiedtherapy.com
About Praxis Clinical Service
Praxis Clinical Services was established in 1994 to provide management services for the development, implementation and operation of Comprehensive Wound Healing Centers (CWHC) and today manages 60+ programs in 28 states. Designed as outpatient departments in hospitals, the centers are committed to the successful treatment and prevention of chronic, non-healing wounds. The company is headquartered in Tustin, CA. More information is available at www.praxisusa.com
About The Jordan Company, LP
The Jordan Company, L.P. (“TJC”) is a private investment firm that specializes in buying and building businesses in partnership with management. Since 1974, partners of TJC have successfully completed more than 300 acquisitions. Today, TJC has a portfolio of companies with aggregate revenues in excess of $4.0 billion. With over $2.5 billion in capital in our affiliated funds, partnerships and portfolio companies, the firm is anchored by the $1.5 billion Resolute Fund, L.P. TJC transactions provide liquidity for owners, raise capital for corporate growth and create significant equity opportunities for key management. The firm is a long-term investor which seeks to build value over time, not overnight.
About The Edgewater Funds
Edgewater Funds is a premier private equity firm based in Chicago, Illinois with over $1 billion in capital under management. Through Edgewater Growth Capital Partners, the firm provides capital and experience to outstanding growth companies. Edgewater Growth Capital Partners’ investment strategy focuses on funding profitable middle market companies where we can add substantial value through our capital, our experience and our broad network. What truly sets Edgewater apart is the wealth of experience that its team brings to investments. Edgewater’s Partners have been successful CEOs and business leaders themselves, collectively having created more than $10 billion in shareholder value.
About Bolder Capital
Bolder Capital is a private investment firm established to find and invest in middle market companies for long-term value creation. Bolder primarily co-invests with JZ Equity Partners and The Edgewater Funds (the “Co-Investors”) and works closely with these funds or their advisors to find appropriate investments. Bolder Capital, the Co-Investors and their advisors bring over 50 years of combined investment experience and substantial financial resources in excess of $1.0 billion in capital. In addition, the Co-Investors and their advisors have extensive operating experience in a broad range of industries, having acquired or funded more than 400 companies.
Source: Diversified Therapy
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