Evolent Health Inc. has entered into an asset purchase agreement with University Health Care Inc., which does business as Passport Health Plan.
Evolent Health, through its Kentucky-based subsidiary Justify Holdings Inc., will acquire 70% ownership interest in Passport Health Plan. Under the deal, Justify will pay $70 million in cash and issue a 30% equity interest to certain Passport Health Plan provider sponsors to acquire substantially all of the assets and liabilities of Passport Health Plan and Passport Health Solutions LLC.
Evolent Health will also expand its existing 10-year management services agreement with Passport Health Plan, which includes additional responsibilities and an enhanced clinical scope for Evolent Health.
Passport Health Plan will be jointly owned and operated by Evolent Health and its current owners, including The University of Louisville, University of Louisville Physicians, University Medical Center, Jewish Heritage Fund for Excellence, Norton Healthcare and the Louisville/Jefferson County Primary Care Association. Once the deal closes, Passport Health Plan will have a new board of directors.
Wyatt Tarrant and Combs LLP is the legal counsel for The University of Louisville and provider sponsors, while Bass Berry & Sims PLC is legal counsel for Evolent Health.