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Berkshire and Warburg Pincus to invest in Ensemble Health Partners

Berkshire Partners and Warburg Pincus have agreed to make a significant investment in Ensemble Health Partners, a provider of technology-enabled revenue cycle management solutions for health systems.

Berkshire Partners and Warburg Pincus have agreed to make a significant investment in Ensemble Health Partners, a provider of technology-enabled revenue cycle management solutions for health systems. No financial terms were disclosed. Golden Gate Capital will retain a minority stake in Ensemble.

PRESS RELEASE

Cincinnati, Ohio, March 28, 2022 (GLOBE NEWSWIRE) — Ensemble Health Partners (“Ensemble” or “the Company”), a leading provider of technology-enabled revenue cycle management solutions for health systems, including hospitals and affiliated physician groups, announced today that Berkshire Partners and Warburg Pincus have entered into an agreement to make a significant investment in the Company. Bon Secours Mercy Health (“BSMH”) will continue as a commercial partner, a shareholder and will remain on the Ensemble board. Golden Gate Capital will retain a minority interest in the Company.

Ensemble partners with nearly 300 hospitals across the United States to improve financial outcomes and patient experiences. Ensemble works with its partners to create a hands-on approach that helps health systems forge a healthier path forward to improve financial performance, the billing process and customer service, allowing providers to focus on improving outcomes and reinvesting into patient care and the patient experience.
The transaction will support Ensemble’s continued growth and allow the Company to invest in new technology and people, building upon Ensemble’s position as the leading innovator in revenue cycle management and allow the Company to continue to deliver outstanding results and best-in-class services.

“Healthcare and the relationship between providers and payors are becoming increasingly complex and the demand for revenue cycle management services is continuing to expand significantly,” said Judson Ivy, Founder, President and CEO of Ensemble. “There is tremendous opportunity to reduce the friction in healthcare for providers and consumers and we want to be at the forefront of innovation that benefits providers and their patients. The addition of two new strategic investment partners will provide Ensemble access to additional capital to support our mission and bring deep expertise and networks within the healthcare industry.”

Ensemble was recently named “Best in KLAS” for full revenue cycle outsourcing for the third consecutive year. The Company is committed to investing in the latest, innovative technology and is developing and deploying new capabilities across the Ensemble IQ (“EIQ”) revenue cycle management platform, recently receiving a sixth U.S. patent for innovative automation technology. Most recently, Ensemble invested in a revenue cycle automation platform that studies end-user behavior within the revenue cycle and uses advanced AI to determine the optimal path for each workflow.

“We are proud to partner with Ensemble, the market leader in the growing end-to-end revenue cycle management space,” said Sam Spirn, Managing Director of Berkshire Partners. “Ensemble has experienced exponential growth during the last few years and our investment will help further strengthen the Company’s industry-leading services, products, and technologies.”

“We’re impressed by both Ensemble’s growth and track record of providing exceptional results to healthcare providers,” said TJ Carella, Managing Director, Head of Healthcare, Warburg Pincus. “Our investment will support their adoption of emerging technologies to deliver concrete solutions that bring maximum impact to providers’ bottom line,” added Amr Kronfol, Managing Director, Warburg Pincus

“We are proud of our successful partnership with Judson and the Ensemble management team over the past three years as we made significant investments to help build and transform the business,” said Doug Ceto, a Board representative for Golden Gate Capital. “We look forward to continuing to support the Company alongside Berkshire Partners, Warburg Pincus and BSMH.”

The transaction is subject to customary conditions and approvals.

Guggenheim Securities, LLC served as the exclusive strategic and financial advisor to the Company, and Honigman, LLP provided legal counsel. Financial advisors to Berkshire and Warburg Pincus are Goldman Sachs, TripleTree and William Blair. BofA Securities served as financial advisor to Golden Gate Capital on the transaction. Ropes & Gray LLP provided legal counsel to Berkshire Partners. Cleary Gottlieb Steen & Hamilton LLP provided legal counsel to Warburg Pincus. Ropes & Gray LLP also represented Golden Gate Capital, together with Nob Hill Law Group, P.C. Polsinelli LLP provided legal counsel to Bon Secours Mercy Health.

About Ensemble Health Partners
Ensemble Health Partners is a leading provider of technology-enabled revenue cycle management solutions for health systems, including hospitals and affiliated physician groups. They offer end-to-end revenue cycle solutions as well as a comprehensive suite of point solutions to clients across the country.