Mergermarket recently featured Joe Caruncho, CEO of Genuine Health Group, who discussed growth plans with the industry-facing publication.
The article reviews the company’s new goals to select a banker to advise on a minority stake sale and discusses Genuine Health Group’s acquisition timeline. Keep reading below.
Genuine Health Group, a healthcare company helping physicians manage patient risk and cost, is close to selecting a banker to advise on a minority stake sale, co-founder and CEO Joe Caruncho said.
The Coral Gables, Florida-based company will decide on a banker in the “next two to three weeks,” Caruncho said. “We’ve talked to two or three that pitched us on how they’d approach the process, and we’re real close to making a decision based on those conversations,” the CEO said. The company will aim to take in about USD 50m-USD 80m in outside capital, likely from a growth equity firm through provision of structured debt, he said.
The profitable company generates around USD 500m in annualized revenue, Caruncho said. The company has been financed solely by Caruncho and co-founder Orlando Lopez-Fernandez, MD, both of whom put in a little over USD 7m to launch the company in 2016 and complete some early acquisitions, Caruncho said. Caruncho is the former CEO of Medicare Advantage-managed care company Preferred Care Partners, which he sold to UnitedHealth Group [NYSE: UNH] in 2012 for an undisclosed price.
Joe Caruncho has earned a national reputation for his pioneering work in advancing value-based care and helping physicians transition to this new model of care delivery. Prior to serving as CEO of Genuine Health Group, Joe co-founded Preferred Care Partners, a Medicare Advantage plan, which he and his partners sold to United Healthcare. As Preferred’s chief executive, he helped grow membership to 55,000 and generate sales in excess of $750 million.
For more than a dozen years, he practiced corporate healthcare law, representing physicians, hospital systems, health care delivery networks, ancillary providers and health plans.