Independent Living Systems (ILS), a national care management company specializing in long-term care, announced Wednesday that it has completed a strategic recapitalization.
ILS' new investors are venture capital firm, Oak Investment Partners, and Mansa Capital, a healthcare private equity firm. Nestor Plana, ILS' founder, president and CEO, declined to share the amount the companies are investing but said the investors will join ILS' board and that they are not buying out the company "at this point."
"The real purpose for this recapitalization is we're going to need to invest significant amounts of money in the expansion of our system and in the expansion of our network to be able to take advantage of the opportunity that we have coming forward," he said.
That opportunity comes from the federal government and states developing new service delivery and payment models for Medicare and Medicaid beneficiaries and the move to keep seniors in their homes receiving home care rather than receiving care in nursing homes.
These integrated models represent an opportunity for ILS that requires the company to expand its systems, networks and national footprint, Plana said. ILS, based in Miami, currently provides services in 43 states. Last fall, 37 states expressed to the Centers for Medicare & Medicaid Services (CMS) their intent to develop integrated health plans for Medicare and Medicaid beneficiaries. "We think the future of managed care is in the managed long-term care states," he said. "I think we saw the evolution of the Medicare advantage business. We saw the evolution of the Medicaid health plan … now it's time for managed long-term care. We are very well positioned to help managed care companies enter into that space and partner up with us in those particular states."
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