Bain Tech Opportunities invests behind HST Pathways, Casetabs; Varsity Healthcare launches new cardiology platform

Bain Tech Ops buys and unites HST Pathways and Casetabs, while Varsity Healthcare Partners forms a new cardiology platform.

Morning, hubsters! 

We’ve got more action at the intersection of healthcare and technology today.

Bain Capital Tech Opportunities is simultaneously acquiring and merging HST Pathways and Casetabs, two cloud-based software providers specializing in the ambulatory surgery center market, the firm told PE Hub.

The deal marks the first control investment and first healthcare IT transaction for Bain Capital Tech Opportunities.

PE Hub wrote in mid-October that HST Pathways was in the late stages of a Piper Sandler-run sale process, at which point sources identified Clearlake’s Provation as a finalist. 

Darren Abrahamson, managing director of Bain Capital Tech Opportunities, said the firm developed a relationship with the Casetabs leadership team many months before the HST process kicked off. HST’s CEO Tom Hui, meanwhile, said the two businesses had talked about a combination in the past. “Bain was kind of the missing ingredient,” the CEO commented.

While that strategic angle bode for Bain well when HST became available, the firm’s interest in the opportunity originated from its longstanding thesis around the ambulatory surgery center market, Abrahamson said, noting its investment in Surgery Partners. “The thesis starts with this view that the ASC [ambulatory surgery center] is a compelling place within the healthcare system.”

That lends to more demand for tools to utilize operating rooms more efficiently or schedule patients, for example: “What that is creating is just more and more demand for software as these centers become larger businesses as there’s increasing consolidation,” Abrahamson said.

For financials and more commentary from Bain’s Abrahamson and HST’s Hui, check out my full report.

In other healthcare-related news this morning, Los Angeles-based Varsity Healthcare Partners has closed a growth equity investment in Partners First Cardiology. The new platform will consolidate independent cardiology and cardiovascular practices, while developing affiliated cardiac catheterization labs. Check out our brief.

That’s it for today’s rundown. As always, write to me at with any tips, feedback or just to say hello!