Indianapolis-based Novia CareClinics LLC, which was a pioneer in operating primary care clinics for employers, has agreed to be purchased by Wisconsin-based QuadMed LLC, another on-site clinic operator, the companies announced Wednesday.
Novia has opened 50 on-site clinics serving more than 90 employers since its founding in 2006. In 2012, Novia had 175 employees and more than $15 million in revenue.
Financial terms of the deal were not disclosed. It is expected to close in the next 30 days.
QuadMed, which is a subsidiary of publicly traded Quad/Graphics, a commercial printing firm, operates more than 40 on-site clinics in various states. Its clinics were started to take care of its own 20,000 employees.
As part of the transaction, Novia CEO Eric Olson will become an executive at QuadMed, serving under its president, Tim Dickman. In a press release, QuadMed said it also intends to fold Novia’s other employees into its operations.
“Novia’s leadership in developing and managing on-site and shared primary care clinics for small to mid-size companies and the public sector complements QuadMed’s successful model of ground-breaking healthcare management solutions for larger companies with a national presence,” said Dickman, in a prepared statement.
On-site clinics have grown in popularity as employers have sought to control their spending on health care while still helping their workers remain healthy.
Novia’s first clinics were primarily at large worksites, such as factories, schools or county governments. In recent years, it has started clinics that serve multiple smaller employers.
Employers pay Novia a monthly management fee for each employee covered by the employer’s health plan. Industrywide, such fees typically fall somewhere between $5 and $30 per employee per month.
“Now, with our investment in Novia CareClinics, we can build on QuadMed’s successful model. As a large employer with nearly 20,000 employees in 28 states, we can partner with other employers to create shared clinics, and continue to pass on what we’ve learned during our health care management journey,” said Joel Quadracci, CEO of Quad/Graphics.