Fresenius Medical Care announced today that the three-way merger it announced earlier this year has closed.
In March, Fresenius entered into an agreement to create a new company for providing kidney care. The agreement involves Fresenius Health Partners (Fresenius Medical Care North America’s value-based care division) entering into a combination with InterWell Health and Cricket Health.
According to a news release, the three-way merger has today officially satisfied customary closing conditions and received regulatory clearance in the U.S.
The new company will operate under the InterWell Health brand, bringing Fresenius Health Partners’ expertise in kidney care together with InterWell’s clinical care models and Cricket Health’s tech-enabled care model that utilizes StageSmart informatics and patient engagement platforms. Altogether, Fresenius said this creates “an innovative, stand-alone entity poised to transform kidney care.”
“I am enthusiastic to see this merger being completed, which will support our sustainable profitable growth. InterWell Health will be the premier value-based kidney care provider in the U.S., combining and leveraging innovative new tools, vast experience, and a deep nephrologist network,” Fresenius Medical Care Deputy CEO Helen Giza said. “By further expanding into the strategically important chronic kidney disease stage-3-to-5-market, we will be able to support even more patients throughout the renal care continuum, including earlier interventions to prevent disease prior to kidney failure. This is good for patients, the payers, and our shareholders.”
The new company expects to engage and manage the care of more than 270,000 Americans living with kidney disease with more than $11 billion in costs under management by 2025, an increase from 100,000 covered lives and $6 billion currently under management, according to the release. This expands InterWell Health’stotal addressable market in the U.S. from approximately $50 billion to $170 billion, Fresenius said.
Any potential book gains from the closing of the transaction are not expected to be material on Fresenius Medical Care’s earnings and will be treated as a special item.
Bill Valle, CEO of Fresenius Medical Care North America and of the future Care Delivery segment for Fresenius Medical Care, said: “We are excited to see the transformative impact we will have on patient outcomes and kidney care delivery in the U.S. as we bring together three leading value-based kidney care entities,” said Bill Valle, CEO of Fresenius Medical Care North America and of the future Care Delivery segment for Fresenius Medical Care. “InterWell Health is well positioned to improve patient outcomes with fewer hospital admissions, slow disease progression, increase transplant referrals and rates, and continue our transition to home dialysis.
“We expect results to be a higher quality of life for patients, improved health equity, and lower total costs for the healthcare industry.”