Financial services firm Sun Life Financial has agreed to acquire US medical intelligence and healthcare navigation provider Pinnacle Care International for $85m (£61m).
Maryland-based PinnacleCare has more than 170 employees and 20 years of experience helping people access an initial or second medical opinion to make critical, informed treatment decisions for complicated diagnoses. PinnacleCare will now be integrated into Sun Life’s US Stop-Loss & Health business.
The transaction is expected to close in mid-2021, subject to satisfaction of customary closing conditions, including receipt of regulatory approval.
“We’re excited for PinnacleCare’s team to join us to help people with complex health conditions,” said Jen Collier, R.N., senior vice president of Stop-Loss & Health. “People who get an unexpected diagnosis are facing a difficult life event and often don’t know where or how to start evaluating their options. Bringing in PinnacleCare’s innovative approach to help people at each step of the healthcare process will help us improve the experience of our members so they feel supported and cared for when they need it most.”
“By offering experienced care navigation for members, Sun Life and PinnacleCare will create a new dynamic that will improve care, outcomes and costs in the process,” said Dan Fishbein, MD, president of Sun Life US. “PinnacleCare extends the value of our stop-loss programs beyond reimbursement to directly helping members in the moments that matter.”
Miles J. Varn, MD, CEO of PinnacleCare, added: “Our team’s empathetic and compassionate approach helps guide people through a very difficult time in their lives. It’s always an honour and privilege to help people when they need it most. We’re also very pleased to start offering our health advisory services in May to our new Sun Life family in the US.”
While PinnacleCare’s services are currently available to more than 2m people through employers and individual clients, it is hoped Sun Life’s distribution network and employer relationships will help PinnacleCare reach more people with their services, while continuing to serve their clients as they currently do. Sun Life will also work with PinnacleCare to build new Stop-Loss & Health client solutions and will explore extending PinnacleCare’s services to members of its other US benefits plans following the deal.
Keefe, Bruyette & Woods, a Stifel company, and Venable served as financial adviser and legal counsel, respectively, to PinnacleCare. Skadden, Arps, Slate, Meagher & Flom served as Sun Life’s legal counsel.