Cimarron Healthcare Capital led an investor group that recapitalized Advanced Medical Pricing Solutions, Inc., which provides services to reduce healthcare costs for employers. RAF Industries and Leavitt Equity Partners joined in the investment.
Cimarron Healthcare Capital (CHC) today announced that it has completed a recapitalization of Advanced Medical Pricing Solutions Inc. (AMPS), a leader in health care cost containment, to fuel the company’s continued growth and expansion. CHC led an investor group that includes RAF Industries and Leavitt Equity Partners.
“We view this transaction and the relationship with our new investors as an opportunity to build and expand our leadership footprint in healthcare cost management services for employers, health care plans, and government entities,” said CEO and President Mike Dendy. “AMPS operated for 14 years on our original investment and it was time for us to recapitalize with a new set of financial and strategic partners. With this new investment, our original shareholders will retain a very significant ownership and our entire management team remains in place.”
“We’re extremely excited to partner with Mike and the AMPS team,” said James Nadauld, Managing Partner at Cimarron Healthcare Capital. “We’ve been following the healthcare cost containment and reference based reimbursement industry closely for several years and are pleased by AMPS’s positioning in the marketplace, the value they are delivering to their customers and the tremendous growth Mike and his team are driving.”
“We are thrilled to be partnering with Cimarron, RAF and Leavitt. Cimarron and RAF have been active in our industry for some time, and we’re very pleased by this vote of confidence. Leavitt Equity Partners is led by former U.S. Secretary of Health and Human Services Mike Leavitt. Leavitt will have an immediate and positive impact on AMPS and our service offerings,” said Dendy. “Last year AMPS grew by over 70% and we are on a financial track to do the same this year, and we see this strategic investment extending the significant growth we have enjoyed over the past five years.”
Debt financing for the transaction was provided by Oxford Finance and Webster Bank. Financial terms of the transaction were not disclosed.
AMPS provides its services to mid-sized and large employers, health-plans, and municipalities to reduce healthcare expenditures without negatively affecting member benefits or health outcomes. AMPS is a national leader in Reference Based Reimbursement, the non-PPO based health plan delivery model that has proven to reduce costs for employers and healthcare plans by 30% or more over conventional PPO options. AMPS also specializes in the review and audit of large healthcare bills prior to payment. AMPS uses a physician review panel to audit large claims prior to payment typically reducing the cost of large billings by 10% or more. www.advancedpricing.com
About Cimarron Healthcare Capital
Cimarron Healthcare Capital is a private equity firm focused on healthcare investments in the lower middle-market. Based out of Philadelphia, Cimarron utilizes an evergreen fund structure with committed capital from family office investors resulting in a flexible capital base. The combination of our evergreen capital base, investment team experience and industry domain expertise and resources aligns our investment strategy with our portfolio companies’ growth and expansion needs, creating an ecosystem designed to maximize value. www.cimarronhc.com
About RAF Industries
RAF Industries is a closely-held private equity firm that invests in middle market industrial and consumer product companies, as well as niche service-oriented businesses. The firm takes a long-range perspective on creating value, with an emphasis on building lasting partnerships with visionary and ethical entrepreneurs. RAF Industries, which was founded in 1979 by Robert A. Fox and is based in Jenkintown, Pennsylvania, has participated in over forty buyouts and currently has fourteen companies in its portfolio. More information about RAF Industries can be obtained at www.rafind.com.
About Leavitt Equity Partners
Leavitt Equity Partners (LEP) is a value-add, health care focused private equity fund affiliated with the health intelligence consulting firm Leavitt Partners, which was founded by Governor Michael Leavitt, former United States Secretary of Health and Human Services. LEP raised its fund primarily from the support of strategic health care limited partners, and seeks to invest minority positions into growth and lower mid-market opportunities that align with its core beliefs about the future of health care. LEP supports its portfolio companies through its unique industry assets, data, and network. www.leavittpartners.com