Acquisition of in-home senior care company comes with new minority ownership partner
Lifespark, a complete senior health company based in St. Louis Park, Minn., today announced that it is acquiring Livio Health, a wholly owned subsidiary of the parent company of Blue Cross and Blue Shield of Minnesota (Blue Cross) that provides in-home health services to people with chronic and complex illness.
The purchase agreement will integrate all operational components of Livio Health, as well Livio Health employees, into the current systems and capabilities of Lifespark throughout the state. Moreover, the parent company of Blue Cross has secured a minority owner stake in Lifespark through a cash investment made in addition to the valuation of Livio Health. Financial terms are not being disclosed. The transition will take place over the next several months, with no disruption in patient care from Livio Health.
"This is more than an acquisition or an investment," said Joel Theisen, BSN, RN, CEO and founder of Lifespark. "It's a significant opportunity to provide Minnesota seniors in both the Twin Cities metro and outstate areas with a different experience than what they have now. The reality is that while we've spent billions caring for the senior population, there is still so much waste in the experience they face through a revolving door of hyper-segmented care. This is a commitment to break the fragmentation and poor outcomes with an innovative solution."
Livio Health became the care delivery arm for the parent company of Blue Cross and Blue Shield of Minnesota as a start-up in 2016. It has since grown into a team of approximately 100 employees, including doctors, nurse practitioners, social workers and support staff that deliver home-based primary care, urgent care, and palliative services to seniors throughout Minnesota.
"We were inspired by Livio Health's ability to shift health care around the person and produce impressive outcomes," said Theisen. "They have the right culture and talent to strengthen the impact of Lifespark and further our mission to advance the health care system so it can work better for the people it serves."
"Blue Cross has always championed care that can deliver better experiences and greater affordability for Minnesotans," said Dana Erickson, president and CEO of Blue Cross and Blue Shield of Minnesota. "Our investment in Lifespark will help to fuel greater growth and innovation in ways that benefit the entire system, across all populations."
Theisen added that Lifespark has been vocal about their desire to create a multi-product strategy that gives seniors more guidance and opportunities to "age magnificently" without any increase in cost. "Isolation is fatal. We are focused on aligning with like-minded organizations with a commitment to collaborate, be bold, and create the change needed to serve seniors fully."
As a result of the acquisition, eligible Blue Cross members will have expanded access to many of the services that Lifespark provides today. Visit lifespark.com to learn more.