QoL is one of the largest specialty pharmacy operators in the U.S. focused primarily on serving the needs of the mental health community. The company partners with mental health providers, typically community mental health centers (“CMHCs”), to provide on-site pharmacy and related services in dedicated space the company leases from these providers. CMHCs are not-for-profit institutions that support or treat the severely mentally ill in an outpatient setting. QoL’s value proposition of improving quality of care at a lower cost to the overall system is compelling to all three constituents in mental health – patient, provider and payor.
QoL was owned by a group of individuals led by the brother of the founder, who passed away tragically before he was able to execute on his vision. The board had recruited an experienced pharmacy executive, Jim Smith, to meet the market demand for on-site pharmacy services at CMHCs. Under Jim’s leadership, the company grew from 12 to 86 pharmacies through a highly efficient and profitable de novo model. Jim and the board were seeking a partner to continue the company’s history of growth.
WHAT WE DID
Within seven months of Nautic’s ownership, Nautic supported management in acquiring a leading competitor, Genoa Healthcare. Genoa operated a very similar pharmacy model. Renamed Genoa Healthcare, a QoL Company, the combined company is the market leader in mental health pharmacy and had over 240 pharmacies at the time of sale to Advent. With the power of consolidated purchasing, the company was able to negotiate significant savings with a key wholesaler. With the support of Jim Smith, Nautic recruited John Figueroa to be chief executive. Prior to joining Genoa, John was the CEO of Omnicare and then became the CEO of Apria Healthcare, which was owned by The Blackstone Group before it was sold to CVS Health for $2.1 billion. John has built a world-class team and the company continues its mission of serving the mentally ill by adding approximately 40 new pharmacies a year.