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Community Care of North Carolina (CCNC) this week acquired RMS Healthcare Management’s Med First Primary & Urgent Care, a portfolio company of private equity firm Sverica Capital Management. Founded in 2007, Med First operates a hybrid model for both primary care and urgent care services, and it’s also one of the frontrunners in risk-based accountable care in the North Carolina market. The acquisition by CCNC is unique because Med First represents a private-equity-backed platform operating in rural areas that now is transitioning to non-profit ownership by a public-private partnership organization for the purpose of advancing larger value-based care initiatives.
“The acquisition of MedFirst by CCNC is a telling sign of the shift toward building comprehensive primary care networks in rural America,” says Alan Ayers, President of Urgent Care Consultants and Senior Editor of JUCM. “With rural markets being the last frontier for urgent care growth, this move creates a powerful, integrated model that can address the unique challenges of these communities, including higher rates of Medicare and Medicaid patients and significant barriers to care attributed to social determinants of health. This partnership is a prime example of how health systems must evolve to serve these vulnerable populations within a value-based care framework.”
Managed Medicaid dominates: For CCNC, the addition accelerates its opportunities to work with the growing managed care Medicaid market in the state. The privatization and expansion of Medicaid in states like North Carolina creates a need for organized, coordinated care, especially in rural areas where there is opportunity for urgent care growth. Today, capitated managed care is the dominant choice for states to deliver services to Medicaid enrollees.