ClearLight Partners, LLC said on Wednesday that it has agreed to sell The Outsource Group to Parallon Business Solutions, a subsidiary of HCA Holdings. No financial terms were disclosed. The transaction is expected to close by the end of this month. Cain Brothers & Company, LLC and Armstrong Teasdale, LLP advised ClearLight during this transaction. Based in St. Louis, Missouri, The Outsource Group is a provider of revenue management services in the healthcare sector.
NEWPORT BEACH, Calif.–(BUSINESS WIRE)–ClearLight Partners, LLC has entered into a definitive agreement to sell The Outsource Group, Inc. (“TOG”) to Parallon Business Solutions, LLC, a wholly-owned subsidiary of HCA Holdings, Inc. (NYSE: HCA). The transaction is expected to close by the end of this month. Terms were not disclosed.
Headquartered in St. Louis, Missouri, TOG provides revenue cycle management services to more than 160 hospital clients and physician practices across 38 states. The company ranks as one of the nation’s largest privately-held healthcare revenue cycle firms, with annual revenues in excess of $100 million.
ClearLight initially invested in TOG in December 2004 – in partnership with Chief Executive Michael A. DiMarco – and subsequently grew the company organically and through a dozen add-on acquisitions. “We identified a trend towards hospitals outsourcing management of their revenue cycle and saw an opportunity to build TOG into a best-in-class provider,” said Patrick Haiz, a partner at ClearLight.
“It has been a pleasure working with ClearLight in growing TOG,” said Michael DiMarco. “Going forward, the company is well positioned to continue its strong growth as part of Parallon, providing excellent service to TOG’s existing clients as well as offering its revenue cycle services to HCA’s extensive network of hospitals and surgery centers.”
TOG’s revenue cycle services include full business office outsourcing, insurance billing and follow up, third-party liability, primary and secondary bad debt collections, Medicaid eligibility, early out/self-pay, onsite financial counseling and physician billing and follow up.
“We are proud of our association with Michael DiMarco and the team at TOG, and of their accomplishments,” commented Michael Kaye, Managing Partner of ClearLight. “Working with talented executives to execute against a well-defined investment thesis that includes strong organic growth as well as selective fold-in acquisitions is one of our preferred ways to build value. We think that Parallon will be an excellent new home for the Company and are pleased to deliver an attractive return to ClearLight’s investors.”
ClearLight was advised by Cain Brothers & Company, LLC and Armstrong Teasdale, LLP.
About ClearLight Partners
ClearLight Partners is a private equity firm located in Newport Beach, CA, with $600 million of assets under management. The team at ClearLight has extensive operating and financial experience, and invests in and contributes to the expansion of established and profitable businesses. ClearLight focuses on leveraged buyout investments in middle-market companies with strong management teams and significant growth potential.
For more information, visit www.clearlightpartners.com
Headquartered in Franklin, Tenn., Parallon is a leading provider of healthcare business and operational services. Parallon partners with hospitals, healthcare systems and non-acute care providers to improve their business performance through the company’s deep industry knowledge and proven practices in revenue cycle; technology; workforce solutions; consulting; group purchasing and supply chain. Visit Parallon’s website at www.parallon.net