Heritage Group has made a strategic investment in Aviacode. Financial terms weren’t announced. Salt Lake City-based Aviacode provides remote medical coding services and software to hospitals and physician offices.
Heritage Group, a Nashville-based healthcare investment firm, today announced a strategic investment in Aviacode, an innovative provider of technology-enabled medical coding services and software. This investment adds to the portfolio of companies for the Heritage Healthcare Innovation Fund (HHIF) and furthers Heritage Group’s mission to fund solutions that meet the needs of its strategic investors.
Based in Salt Lake City, Aviacode provides remote medical coding services and software to hospitals and physician offices across several settings and specialties. A number of forces currently facing healthcare providers—including the looming ICD-10 transition, persistent reimbursement pressure, and a national shortage of qualified coders—have created a growing need for accurate, high-quality coding. Through its cloud-based platform, Aviacode offers access to a national network of certified coders and provides enhanced productivity, compliance and quality.
“We are very pleased to partner with Aviacode, which has developed a differentiating technology platform and built a leading medical coding operation over the last decade,” said Rock Morphis, managing director of Heritage Group. “This funding will enable Aviacode to further accelerate its record growth trajectory and increase its capacity to deliver innovative medical coding solutions to new customers. We are proud to be part of that effort.”
Heritage Group’s strategic investors represent the entire continuum of healthcare delivery, including health systems, payors, post-acute providers, and medical distributors. HHIF’s limited partner base is comprised of Amedisys, Inc., Cardinal Health, Inc., Community Health Systems, Health Care Service Corporation, Intermountain Healthcare, Iowa Health System, LifePoint Hospitals, Memorial Hermann Healthcare System, Trinity Health and Vanguard Health Systems.
“The Heritage investment is significant to us as a company. It represents not only a financial opportunity to expand our cloud-based technology and coding solutions in the revenue cycle management markets, but also a strategic opportunity to collaborate with experts from within the Heritage limited partnership base. We are already seeing strategic value in those relationships,” said Dave Jensen, CEO of Aviacode.
Brentwood Capital Advisors served as the financial advisor to Aviacode in this transaction. Terms of the deal were not disclosed.
About Heritage Group
Heritage Group is a Nashville-based, venture capital firm with over 25 years of experience financing, operating and advising companies at all stages. Created by a diverse group of the nation’s leading healthcare services firms, the Heritage Healthcare Innovation Fund is a $167M strategic initiative focused on investments in businesses that improve the delivery of healthcare services. For more information, go to www.heritagegroupusa.com.
Aviacode is the industry leader in technology-enabled medical coding services since 1999. Aviacode’s cloud-delivered coding applications, ProCoder™ and ProAuditor™, enable professional medical coders and coding auditors to create consistent, reliable and predictable coding results and document reviews. Aviacode’s proprietary technology and workflow improves the accuracy and efficiency of medical coding, which is the process of translating clinical documentation into diagnosis and procedure codes, which is at the heart of healthcare revenue cycle. These improvements impact hospitals and physician groups profoundly through improved efficiency, increased revenue and strengthened cash flow. For more information, visit www.aviacode.com.