Hygea

About Hygea

Founded in 2007 by Manuel E. Iglesias and Edward (Ted) Moffly, Hygea Holdings operated as a diversified healthcare holding company based in Miami, Florida. Iglesias brought a background in law, business development, and venture capital, while Moffly contributed his experience as a CFO for technology companies. The company's business model centered on acquiring and managing physician practices, ancillary service companies like pharmacies and diagnostic facilities, and independent physician associations (IPAs). It aimed to create an integrated healthcare delivery system, primarily serving commercial, Medicare, and Medicaid patients. Revenue was generated by managing these entities and entering into at-risk contracts with Medicare and Medicaid HMO plans through its Management Service Organizations (MSOs). The core strategy was to apply best practices and technology to reduce inefficiencies in healthcare delivery, believing that keeping patients healthy is more cost-effective than treating sickness.

Hygea's services were structured around two main operations: a network of multidisciplinary integrated medical group practices with a focus on primary care physicians, and an independent physician network called Palm Medical Network, which managed at-risk contracts with Medicare Advantage HMOs throughout Florida. The company provided its affiliated physicians with back-office support, electronic medical records, and expertise in contracting and coding, allowing doctors to focus on patient care. Hygea's growth was fueled by an aggressive acquisition strategy, which included the notable acquisition of MedPlan in 2016, a move that significantly expanded its network in the Southeast. At one point, the company's network included over 1,800 physicians across 76 specialties. This growth was supported by significant funding, including a $40 million funding round and a $100 million credit facility secured in 2016 for further acquisitions.

Despite its ambitious expansion, this aggressive growth strategy led to financial difficulties. The company acquired underperforming physician practices, which strained its resources. By early 2020, Hygea Holdings and 32 of its affiliates filed for Chapter 11 bankruptcy, citing approximately $200 million in debt and a significant negative cash flow. The bankruptcy proceedings led to a restructuring, with the final decree closing the cases entered in December 2023. PitchBook now lists the company as "Out of Business".