Corporate Background

Founded in 1997, XLHealth has a proud history as an industry leader in improving the quality of care for chronically ill Medicare beneficiaries. The company has evolved from an outsourced provider of disease management services to become the owner and operator of Care Improvement Plus — a Medicare health plan focused on the unique needs of underserved and chronically ill beneficiaries.

Today, Care Improvement Plus and its suite of Special Needs Plans serve more than 113,000 Medicare beneficiaries across twelve states -- providing care management-focused health care coverage to those with chronic conditions such as diabetes and heart failure, as well as those with both Medicare and full Medicaid.

XLHealth has been at the forefront of chronic care management innovations and the company’s unique approach has resulted in positive health care outcomes while lowering healthcare costs.

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. The company is a recognized pioneer in its delivery of care management services in a personal, “high touch” way that supports physicians in increasing the quality of care for their Medicare patients and eliminating unnecessary barriers to preventive treatment.

XLHealth’s programs emphasize the critical importance of the role physicians have in the healthcare equation. In fact, the premise upon which XLHealth is predicated is that care management services and support programs are most effective when they establish strong ties with the local healthcare community.

In 2003, the United States Department of Health and Human Services and the Centers for Medicare & Medicaid Services (CMS) awarded XLHealth one of three demonstration projects in the nation to test whether disease management services would improve the care of chronically ill Medicare beneficiaries. Within the program’s first year, XLHealth successfully recruited and provided disease management services to approximately 10,000 participating Medicare beneficiaries.

In 2004, CMS selected XLHealth to administer one of eight Medicare Health Support pilot programs, a major initiative to help improve the quality of care for chronically ill beneficiaries under the Medicare—fee—for—service program.

In August of 2007, XLHealth completed 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, a private equity firm. GS Capital Partners, LP, the private equity arm of Goldman, Sachs & Co. which helped fund the company’s growth in 2005, continues as an investor of XLHealth.

XLHealth continues to evolve as a key participant in Medicare’s renewed focus on beneficiaries with chronic illnesses including diabetes and heart failure. Based on the company’s experience as a chronic care management company focused on the needs of seniors, XLHealth’s focus is to continue rates of complications and hospitalizations by improving the quality of care for the Medicare lives it manages.