OMERS Private Equity Sells Paradigm to Patient Square Capital
WALNUT CREEK, Calif.--(BUSINESS WIRE)--Paradigm (“Paradigm” or the “Company”), a specialty care management organization focused on delivering solutions that improve outcomes for individuals with complex injuries and diagnoses, today announced that it has entered into a definitive agreement to be acquired by Patient Square Capital (“Patient Square”), a leading health care investment firm.
This planned investment by Patient Square reflects a long‑standing relationship with Paradigm’s leadership and deep familiarity with the Company’s mission and performance. It underscores Paradigm’s proven ability to manage complex, high‑acuity cases and its growing leadership in payment integrity, home health, and network services. It also reflects strong confidence in the Company’s ability to deliver measurable cost savings and improved outcomes for patients and clients in both the workers’ compensation and health care payer sectors. The transaction marks the successful conclusion of Paradigm’s partnership with OMERS Private Equity.
“Patient Square shares our commitment to improving outcomes for people facing the most complex health challenges. Their partnership will help Paradigm extend our proven model in workers’ compensation and accelerate our impact across the broader health care landscape,” said John S. Watts, Jr., CEO, Paradigm. “We are proud of the progress achieved in partnership with OMERS, and grateful for their support of our strategy and investment in our team and platform, which helped position Paradigm as a leader in complex care management.”
“Paradigm has built a leading business that delivers reliable outcomes in complex care management,” said David Katz, Partner at Patient Square. “We’re excited to partner with this seasoned team as the Company accelerates its growth and expands its impact for patients and payers.”
The transaction is expected to close in the first half of 2026. Leerink Partners served as lead financial advisor to Paradigm. Truist Securities, Inc. also served as financial advisor to the Company. Weil, Gotshal & Manges LLP is serving as legal advisor to Paradigm. Greenberg Traurig is acting as legal counsel to Patient Square, and UBS Investment Bank and Santander are serving as its financial advisors.
About Paradigm
Paradigm is a specialty care management organization, focused on improving the lives of people with complex injuries and diagnoses. For nearly 35 years, the company has been a pioneer in value-based care, generating the very best outcomes for patients, payers, and providers in the workers’ compensation and healthcare markets. Paradigm impacts complex, high-cost care and spend categories through risk-based clinical solutions and case management, specialty networks, home health, shared decision support, and payment integrity programs. The company consistently delivers proven cost savings, while improving outcomes across the continuum of care. For more information, please visit www.paradigmcorp.com.
About Patient Square Capital
Patient Square Capital is a dedicated health care investment firm with approximately $17 billion in assets under management. The firm aims to achieve strong investment returns by partnering with growth-oriented companies and top-tier management teams whose products, services, and technologies improve health. Patient Square utilizes deep industry expertise, a broad network of relationships, and a partnership approach to make investments in companies that will grow and thrive. Patient Square invests in businesses that strive to improve patient lives, strengthen communities, and create a healthier world. For more information, visit www.patientsquarecapital.com.
OMERS Private Equity recently announced the sale of Paradigm:
Transaction delivers significant value for OMERS members and positions Paradigm to sustain investment in innovation and extended capabilities
New York, NY – OMERS Private Equity (OPE) announced today that it has entered into a definitive agreement to sell Paradigm, a leading specialty care management organization, to a leading health care investment firm.
Since its investment in Paradigm in October 2018, OMERS and the Paradigm leadership team have worked closely together to transform the company into a robust, data-driven specialty care management platform delivering value-based solutions for individuals with complex injuries and diagnoses, serving workers’ compensation and group health payors. During OMERS ownership, Paradigm broadened its offering across workers’ compensation into adjacent healthcare end markets, expanded its capabilities in complex case management, home-based care, payment integrity and specialty networks, and invested in technology, analytics and clinical talent to support sustainable growth.
“OMERS has been an outstanding partner to Paradigm, backing our strategy, investing in our people and capabilities, and sharing our long term commitment to improving outcomes for some of the most complex patient populations,” said John Watts, Chief Executive Officer of Paradigm. “We are well positioned as we move into our next chapter, extending our proven, value based model and continuing to deliver meaningful results for patients, payors and providers.”
“The sale of Paradigm represents a great outcome for OMERS and our members and marks an important milestone for a business we have been proud to back for many years,” said Geoffrey Bird, Co-Head of Private Equity at OMERS Private Equity. “Paradigm has established itself as a differentiated leader in complex care management and cost containment and we look forward to watching their continued success as they move towards a new phase of growth."
The sale represents the successful realization of OPE’s long-standing partnership with Paradigm marked by a period of strong operational and financial performance, and is consistent with OPE’s thesis driven, partnership first strategy of backing market leading, mission critical businesses on behalf of OMERS more than 640,000 members. The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.
Even though financial details were not disclosed, this is another great distribution for OMERS Private Equity.
Recall, in December, OMERS Private Equity announced the sale of CBI Health’s home care business to Extendicare (I covered it here).
At the time I noted:
[..] carving out CBI Home Health and selling it to Extendicare for $517 million was a great way to realize value on this deal.
OMERS PE did its job to nurture and help grow the operations at CBI Health which it still owns (the physiotherapy and rehabilitation services sector) and realized great value for its members on this distribution.
This is also a great acquisition for Extenidcare and it will help solidify the company as Canada's leader in the home care business.
This transaction with Paradigm is expected to close in the first half of 2026.
OMERS Private Equity did its job nurturing this company since 2018, adding value, and now Patient Square Capital has acquired it for an undisclosed amount to take it to the next level.
The key points were in the OMERS PE press release:
“OMERS has been an outstanding partner to Paradigm, backing our strategy, investing in our people and capabilities, and sharing our long term commitment to improving outcomes for some of the most complex patient populations,” said John Watts, Chief Executive Officer of Paradigm. “We are well positioned as we move into our next chapter, extending our proven, value based model and continuing to deliver meaningful results for patients, payors and providers.”
“The sale of Paradigm represents a great outcome for OMERS and our members and marks an important milestone for a business we have been proud to back for many years,” said Geoffrey Bird, Co-Head of Private Equity at OMERS Private Equity. “Paradigm has established itself as a differentiated leader in complex care management and cost containment and we look forward to watching their continued success as they move towards a new phase of growth."
Alexander Fraser is the Global Head of Private Equity at OMERS, responsible for the overall leadership and performance of the business. He joined OMERS in March 2025 and is based in New York.
Clearly he has directed his troops to sell some assets to shore up liquidity and realize on gains and he is setting the course of their new strategy.
More on that next week when I cover OMERS' 2025 results.
Below, Paradigm CEO John S. Watts, Jr. sits down with R&I at the 2019 National Workers' Compensation Disability Conference & Expo to discuss how Paradigm has continued to evolve its whole person, whole family approach to catastrophic care management and how that experience can be used to drive better outcomes overall.
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