ApolloMed Buys Assets Of TIP, Expanding Care Partners Business Into Texas Geography

Apollo Medical Holdings Inc AMEH inked a deal to acquire assets relating to Texas Independent Providers, LLC (TIP) for an undisclosed amount.

The buyout aims to expand its Care Partners business in Texas and help local providers manage cost and risk.

With the acquisition, AMEH plans to deploy its value-based care management and operational platform to boost TIP's provider network and improve the healthcare experience for patients. 

The company expects the transaction to close in Q3 2023.

As a part of the acquisition, Carlos Palacios, TIP's M.D., President, will join AMEH as the Chief Medical Officer for Texas.

Also, the co-founder and Executive Director of TIP, Vincent Roth, will join AMEH as the Group Vice President of Operations for Texas.

"We are thrilled to begin partnering with some of Houston's most esteemed providers in providing value-based care services for their patients. Partnering with TIP's high-quality, community-focused providers accelerates our expansion in Houston and represents the continued execution of our strategy to empower providers in this key new geographic market to deliver equitable, patient-focused care to their communities," said Brandon Sim, Co-CEO of ApolloMed.

The company plans to fund the transaction with cash on hand. As of March 31, 2023, cash and cash equivalents and investments in marketable securities stood at $278.7 million.

Price Action: AMEH shares traded higher by 2.25% at $32.79 on the last check Wednesday.