Company Milestones

Founded in 1997, XLHealth has a proud history as an industry leader in improving the quality of care for chronically ill Medicare beneficiaries through care management services. Over the past three years, the company has evolved from an outsourced provider of disease management services to become the owner and operator of Care Improvement Plus, provider of Medicare Advantage health plans that focus on underserved Medicare beneficiaries and those with chronic illness.

XLHealth (www.xlhealth.com) has been at the forefront of chronic care management innovations since its inception. XLHealth’s chronic care management model goes beyond the more customary approach of telephone or direct mail communications with members. The company’s approach is based upon the belief that support services must be customized for each individual across the spectrum of their healthcare needs.

XLHealth believes in fully understanding each patient’s unique needs in order to provide the most comprehensive support possible. Staff members work closely with Medicare beneficiaries and their healthcare providers to collect and share all relevant information. XLHealth’s state–of–the–art information technology allows the company to assess, stratify, and analyze patient care needs and outcomes–preventing avoidable and expensive disease complications and hospitalizations.

1997:

Torrey Brown, M.D., William Cirksena, M.D., and Jeffrey L. Tredwell, D.P.M., held discussions about improving the way healthcare is delivered to chronically ill patients.

Brown had served as an assistant dean at Johns Hopkins Medical School and a vice president at Johns Hopkins Hospital; Cirksena had served as the chief of nephrology at the Walter Reed Army Institute of Research; and Tredwell had established the System of Evaluation and Treatment that led to a significant reduction of complications causing lower extremity amputations.

They subsequently presented their newly developed approach to disease management to Patrick Hervy, a successful entrepreneur who worked with them to bring their vision to reality. Paul A. Serini, Esq., joined their effort, bringing with him more than 20 years of experience in the healthcare, legal and allied consulting fields.

1998:

Diabetex, as XLHealth was originally called, is established. First contract covering PacifiCare plan members begins.

1999:

XLHealth issues its first sales of Class A Preferred Stock.

2000:

XLHealth signs first contract with Humana to offer disease management services to approximately 4,000 plan members.

2002:

XLHealth partners with Walgreens, the largest drugstore operator in the U.S., to offer participants in XLHealth’s disease management programs one-on-one medication consultations with pharmacists familiar with the complex issues experienced by chronically ill patients.

2003:

XLHealth is awarded a demonstration project in Texas by the Centers for Medicare & Medicaid Services (CMS). The study seeks to improve quality of care and efficiency by providing chronically ill patients with enhanced prescription drug coverage and disease management services. XLHealth successfully recruited 10,000 participants in the program.

2004:

CMS selects XLHealth to administer Tennessee’s Medicare Health Support program, a major new initiative to help improve the quality of care for chronically ill beneficiaries under Medicare’s fee-for-service program.

XLHealth is awarded the Disease Management Association of America’s Recognizing Excellence Award for "Best Disease Management Program: Medicare."

2005:

XLHealth announces the closing of a significant private placement of preferred stock and related options with GS Capital Partners 2000, L.P., a private equity fund managed by Goldman, Sachs & Co., and Norman Payson, M.D., the former chairman and chief executive officer of Oxford Health Plans. The investment represents one of the largest capital financing transactions in the growing disease management sector and marks Goldman Sachs Capital Partner’s entry into the field.

The Disease Management International Purchasing Consortium recognizes XLHealth for its approach to medication management by selecting the company for its “Best Disease Management Ideas for 2005” award.

CMS grants XLHealth approval to market its Care Improvement Plus plan, a new special needs plan that focuses on the unique healthcare needs of chronically ill Medicare beneficiaries living in Maryland. XLHealth is one of only a few companies throughout the nation approved by CMS to provide the Medicare Advantage plan, which combines traditional Medicare coverage with disease management services, a Medicare Part D drug benefit and medication management services, for Medicare beneficiaries with diabetes, heart failure, and/or end-stage renal disease.

2006:

Care Improvement Plus launches services in eight counties in Maryland, with approximately 98,000 chronically ill beneficiaries eligible to join.

XLHealth launches the Medicare Health Support pilot program to serve approximately 20,000 invited, fee-for-service Medicare beneficiaries living with diabetes and/or heart failure in Tennessee. XLHealth is one of only eight organizations selected by CMS to operate a regional Medicare Health Support pilot program.

CMS grants XLHealth approval to broaden Care Improvement Plus coverage to include Medicare beneficiaries with chronic obstructive pulmonary disease. Care Improvement Plus also receives approval from CMS to expand its Maryland plan into three additional Maryland counties and launch in five additional states: Arkansas, Georgia, Missouri, South Carolina and Texas, making the plan available to approximately 1.4 million Medicare beneficiaries. This is the first time a chronic illness Special Needs Plan is offered to residents of Arkansas, Georgia, South Carolina and Texas.

2007:

Care Improvement Plus grows to become XLHealth’s core business focus, with over 65,000 chronically ill members.

XLHealth successfully completes a $290 million private placement with funding provided by MatlinPatterson Global Opportunities Partners III L.P., and MatlinPatterson Global Opportunities Partners (Cayman) III L.P., investment partnerships managed by MatlinPatterson Global Advisors LLC.

2008:

Care Improvement Plus continues to attract new members with its unique plan services, adding dental coverage to all plan options.

Care Improvement Plus launches its HouseCalls program for plan members. The program provides members with the option of receiving a free personal home visit from a licensed, specially trained local healthcare provider to review their medical needs, answer health related questions, and discuss important topics to address at their next doctor’s visit.

Care Improvement Plus receives a perfect score from the Centers for Medicare & Medicaid Services (CMS) in the evaluation of its structure and process measures. The measures are the first in a series of new requirements evaluating the performance of SNPs in providing high quality care and improving health outcomes for Medicare beneficiaries.

2009:

Care Improvement Plus receives approval from CMS to expand its plan offerings to include a SNP for beneficiaries with both Medicare and Medicaid, as well as a Medicare Advantage plan for those beneficiaries without special needs, such as spouses and caregivers of Care Improvement Plus SNP members.