Aveta Inc. announced the addition of a new subsidiary, Aveta Health Solutions, which helps physicians navigate the shifting business environment and the changes coming from healthcare reform. Aveta Health Solutions advises physician practices, hospitals and payors on building and managing physician networks. Aveta Health Solutions also helps its clients manage the financial risk that new care delivery models are forcing onto service providers. Aveta Health Solutions helps practices and the hospitals and payors that partner with them to handle the competing demands for higher quality and lower cost in today's healthcare landscape. Aveta Health Solutions helps clients focus on enhancing quality under shrinking reimbursement, developing sound business strategies and proactively working to prepare for what's ahead in healthcare reform.

Aveta, Inc. is paying a special dividend through a $550 million recapitalization of its loan. The company announced a $500 million term loan B and a $50 million revolver, both with five-year terms, launched on March 21, arranged by Bank of America Merrill Lynch, Citigroup Inc. and Jefferies & Co. The loans were priced at LIBOR plus 650 basis points, with a 2% LIBOR floor and original issuance of 97. The loans have a soft call protection of 102 in the first year and 101 in the second. They have mandatory prepayments of 75% of excess cash flow, 100% of asset sales and debt issuance and 50% of equity issuance. They have maintenance covenants with a maximum leverage ratio of 2.25 times, with step downs. Other maintenance covenants include a minimum fixed-charge coverage ratio, a maximum on capital expenditures and a minimum on statutory capital requirement.

Aveta, Inc. announced the addition of Timothy P. O'Rourke as president of new market development. In this role, O'Rourke will lead the company's efforts to expand existing services into new areas and oversee the development of new physician, hospital and health plan partnerships. O'Rourke will report to the company president and CEO, Dr. Richard Shinto. O'Rourke most recently served as National Vice President of Provider Contracting for Humana. In that role, O'Rourke oversaw Humana's nationwide provider engagement programs with 1.4 million members in addition to leading their medical home and ACO development strategy.