Spectrum Equity-backed Net Health buys ReDoc

Net Health, which is backed by Spectrum Equity, said Tuesday that it has acquired ReDoc. No financial terms were disclosed. Healthcare Growth Partners advised Net Health on the transaction while Brentwood Capital Advisors advised ReDoc. Based in Brentwood, Tenn., ReDoc is a provider of therapy documentation and management solutions.

PRESS RELEASE

PITTSBURGH, June 3, 2014 /PRNewswire/ — Net Health, the leading provider of software solutions for outpatient specialty care, announced today its acquisition of The Rehab Documentation Company (ReDoc), a provider of integrated clinical EMR and management solutions for the growing physical, occupational, and speech therapy markets.
Net Health CEO, Anthony Sanzo, explains the motivation to move into the rehabilitation sector, “At over 25,000 facilities today, this is a large, underpenetrated, and highly fragmented market. Based on the practice management, clinical, regulatory, and financial needs of therapists and facilities, a highly specialized solution is required. It plays right into our core strength of providing perfectly fitted software to outpatient specialty markets.”
ReDoc is a standout in the sector because it created a valuable focus on hospital-based outpatient facilities. Sanzo states, “We saw that the quality of their solution was so well regarded that it was adopted by some of the biggest names in hospital-owned rehabilitation therapy services.”
ReDoc CEO, Bill Southwick, adds, “The culture and customer-focused approach at Net Health made for a natural fit. The ReDoc team constantly develops and improves our products and services for an increasingly sophisticated rehabilitation customer base. As a component of Net Health’s integrated outpatient solutions, with a combined workforce of nearly 200 employees, ReDoc now has the opportunity to surpass customer expectations of service, integration, and connection to the broader patient care community.”
Net Health executives are complimentary about ReDoc’s development to date and deep roots in the rehabilitation market. Sanzo shares, “This is fertile ground, as we expect rapid adoption of rehabilitation solutions in general. The ReDoc acquisition allows us to extend rehabilitation solutions to our customers who would like us to support more needs of their outpatient facilities, as well as build a new rehabilitation focused client base.”
Net Health is a portfolio company of Spectrum Equity and is advised by Healthcare Growth Partners. Terms of the transaction were not disclosed. Brentwood Capital Advisors LLC served as exclusive financial advisor to The Rehab Documentation Company in the transaction.
About Net Health
Net Health is the leader in software solutions for outpatient specialty care. Experts in The Art of the Right Fit™, its fully interoperable EMR/EHR solutions serve five medical specialty markets. Offering clients an end-to-end solution that includes practice management tools, clinical workflow documentation, revenue cycle management, and analytics, Net Health serves more than 34,000 healthcare professionals in more than 2,000 wound care, urgent care, occupational medicine, employee health, and workplace medicine facilities. Net Health is committed to strengthening patient care, outcomes, and facility performance with solutions that support more than $1.5 billion in health services each year. Learn more at www.nhsinc.com.
About ReDoc
ReDoc has been the leader in therapy documentation and management software for nearly two decades. With clinical, technical and management experience in the therapy industry, ReDoc understands the unique business and clinical needs of physical therapists, occupational therapists and speech-language pathologists in hospitals and private practices. ReDoc is focused on providing solutions for therapists to efficiently document patient care to improve reimbursement, increase profitability, and enhance patient care and satisfaction. All of the company’s solutions maintain current industry standards with Microsoft and HL-7 and are interoperable with multiple office systems.
About Spectrum Equity
Spectrum Equity is a leading growth equity firm that provides capital and strategic support to innovative companies in the information economy. Spectrum Equity’s current and historical healthcare investments of note include HealthMEDX, a provider of long-term and post-acute care technology; MedHOK, a provider of care, quality, and compliance solutions for health plans; Passport Health Communications, a provider of patient access solutions for hospitals and physicians (acquired by Experian); and QTC Management, the nation’s largest provider of outsourced disability evaluations (acquired by Lockheed Martin). Spectrum Equity has been an active investor in Software & Information Services and Internet & Digital Media business including Ancestry.com, BATS, GrubHub (NYSE: GRUB), iPay Technologies (acquired by Jack Henry), lynda.com, Mortgagebot (acquired by Davis & Henderson), RiskMetrics Group (acquired by MSCI), Seisint (acquired by LexisNexis), SurveyMonkey, and World-Check (acquired by Thomson Reuters). Founded in 1994 with offices in Boston and Menlo Park, Spectrum Equity has raised $4.7 billion in capital across six funds.

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