Pouschine Cook Capital Management

Interplan Health Group

Interplan Health Group (“IHG”) is a preferred provider organization (PPO) for workers’ compensation and group health plans, headquartered in Farmington, CT with its main operating locations in California, Ohio and Texas. IHG was founded in 2001 to acquire Interplan Corporation, which was located in Stockton, CA. Founded in 1984, the original Interplan began by developing a comprehensive group health network in Northern California. Over time the company expanded into serving workers’ compensation plans and enlarged its geographic footprint into Southern California and neighboring states.

Insight

IHG represented a strong business franchise, capable of exporting its business model but lacking a strong sales and marketing capability and scalable infrastructure. We saw a clear opportunity to take a very strong regional player and roll out the model to other geographies, both organically and through acquisition. It also appeared to us the PPO model would continue to gain market share in the overall healthcare industry.

Flexibility

Together with another private equity firm and senior management, Pouschine Cook acquired Interplan from the founder who wanted to diversify for estate planning needs and to address successor planning. New management was looking for partners who understood healthcare services businesses and would assist with evaluating, financing and integrating future acquisitions.

Enhancement

Working with senior management and co-investors, Pouschine Cook executives rolled up their sleeves and helped establish proper corporate governance, upgrading key management areas such as finance, IT, sales and marketing, and taking an active role in the acquisition strategy. The transition from a founder-controlled enterprise to a professional organization has been completed.

With an additional three acquisitions, IHG’s network grew to 19 states in the Southeast, Midwest and West Coast as well as the addition of a pharmacy benefits manager. Over the investment period, revenues quadrupled

www.interplancorp.com