Coventry Health Care, Inc.
In 1997, Warburg Pincus invested in Coventry Health Care (Coventry), an operator of health maintenance organizations (HMOs) and other health plans. Warburg Pincus identified Coventry as a market leading brand in an attractive market with numerous opportunities to grow revenue and improve its financial position. After acquiring Coventry, the Warburg Pincus team worked with the company to pursue strategic top and bottom line growth initiatives. With Warburg Pincus’ support, the company hired a new CEO who had a long and successful history as a senior executive in the managed care industry. Warburg Pincus worked with Coventry to increase organic membership growth and improve its pricing strategy, while also supporting the company’s very active acquisition strategy. With assistance from Warburg Pincus, Coventry completed 15 acquisitions, which added 1.6 million members over six years. Warburg Pincus exited Coventry in 2003.
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