Well-known health care executives are working with a private equity firm to acquire a long term care insurance support services company.
L. Ben Lytle and his son, Hugh Lytle, have formed UniVita Health with backing from Genstar Capital L.L.C., San Francisco, and have announced an agreement to buy Long Term Care Group Inc., Eden Prairie, Minn., from Advent International Corp., Boston, and CCP Equity Partners, Hartford.
LTC Group, founded in 1996 through the spinoff of a business created by UnitedHealth Group Inc., Minnetonka, Minn., sells application processing, underwriting, policy administration, clinical assessment, claims processing and other services to LTC insurers.
LTC Group now has 1,200 employees and administers about 20% of all U.S. LTC insurance policies, according to Advent International and CCP.
Genstar, UniVita, Advent and CCP are not saying how much UniVita is paying for LTC Group.
But Genstar is hoping that the LTC Group investment will be the first in a series of senior care services investments, Genstar says.
“UniVita plans to become the largest national provider on a region-by-region basis of integrated independent aging services and advanced care giving for seniors and their caregivers,” UniVita organizers say. “It will target businesses that help seniors maintain their independence and ultimately live their last years with dignity… By integrating the products and services of these companies, UniVita will make the home a safe place for individuals to age, maintain support networks, and receive medical care.”
U.S. demographics “have positioned the long term care industry to experience significant growth,” Ben Lytle, the executive chairman of UniVita, says in a statement about the creation of the new company. “The unprecedented aging of the baby boom population and the increasing expected lifespan of seniors will create further opportunities that we hope to capitalize on for our investors.”
Ben Lytle is the past chairman of Anthem Inc., Indianapolis, and the past chief executive officer of Axia Health Management L.L.C., Tempe, Ariz., a wellness firm that was acquired by Healthways Inc., Nashville, Tenn., in 2006.
Hugh Lytle, the CEO of UniVita, was the president of Axia when Axia was acquired.
Patrick Yount, the former chief financial officer at Axia, will be the CFO and chief operating officer at UniVita, and the managers now running the LTC Group will continue to run the LTC Group, UniVita organizers say.