Passport Health Plan and Evolent Health, a company providing an integrated value-based care platform to the nation’s leading providers and payers, today announced that Evolent has entered into a definitive agreement to partner with the current sponsors of Passport in continuing to serve the Kentucky Medicaid market. The current sponsors, which include 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, have been seeking a partner to provide expanded management and operational support, as well as capital through joint ownership of the health plan, and have selected Evolent as its long-term financial and operating partner.
Per the terms of the agreement, Evolent will acquire an ownership interest in Passport Health Plan and will expand the scope and term of its long-term Management Services Agreement with the health plan. Evolent will also provide interim balance sheet support if necessary to meet near-term regulatory capital requirements.
Passport has provided Medicaid managed care services in Kentucky since 1997 and currently serves more than 300,000 members statewide. The plan employs more than 600 Kentuckians, primarily at its headquarters in Louisville. Evolent has provided extensive services to Passport since 2016, when the organizations formed a relationship to launch the Medicaid Center of Excellence focused on improving health outcomes for Medicaid beneficiaries in Kentucky and in several states nationwide.
Passport will be jointly owned and operated through a partnership between Evolent, The University of Louisville, the University of Louisville Physicians, University Medical Center, Jewish Heritage Fund for Excellence, Norton Healthcare and the Louisville/Jefferson County Primary Care Association. The plan will be governed by a newly formed board of directors upon closing with joint representation from the current owners and Evolent Health. Evolent intends to maintain all Kentucky operations under the Passport name and looks forward to building upon the plan’s excellent history of service in the Commonwealth.
“We strongly believe in Passport’s mission and have been proud to partner with Passport’s leadership team to serve the Commonwealth of Kentucky,” said Evolent Health Chief Executive Officer Frank Williams. “We are honored by the vote of confidence the owners of Passport have given us to continue to build on an extraordinary legacy of delivering an excellent member experience to Kentucky’s Medicaid beneficiaries. We are confident that by leveraging our value-based care platform and the full scope of our clinical programs, as well as providing enhanced functional expertise, we can drive strong operational and financial performance. We look forward to collaborating with The University of Louisville and other Passport owners—as well as local and state regulatory agencies and other key stakeholders—to continue driving improved health outcomes and critical support to one of the Commonwealth’s most vulnerable populations.”
“The University of Louisville helped create Passport Health Plan in 1997, paving the way for what has become a national model for managed care,” said University of Louisville President Dr. Neeli Bendapudi. “Now, we are proud to partner with Evolent Health to begin a new chapter that will continue to spark innovation in the delivery of care.”
“For the past 20 years, Passport has been proud to work with the Commonwealth, our provider partners and other valued supporters to deliver a quality health plan that promotes our members’ best interests and health outcomes,” said Passport Health Plan Chief Executive Officer Mark Carter. “I am confident that Passport has a bright future ahead, thanks to the solid foundation we’ve built and the significant investment, expertise and support that Evolent brings to the table. Evolent and Passport are dedicated to finding ways to bring the West Louisville Health and Wellbeing Campus to life, as we believe it will significantly positively impact the health of the community. Evolent and Passport will be working with developers and key stakeholders to create a definitive plan and select a real estate developer to bring the project to fruition.”