NewSpring Healthcare and TT Capital Partners have made an investment in MacroHealth Solutions, a health information tech company. No financial terms were disclosed.
RADNOR, PA – June 10, 2020 – NewSpring (the “Firm”), a family of private equity strategies, today announced that NewSpring Healthcare, the Firm’s dedicated healthcare strategy, has invested in MacroHealth Solutions (“MacroHealth” or the “Company”) in partnership with TT Capital Partners.
MacroHealth is a health information technology company that provides healthcare network optimization and claims settlement services to insurers, third-party administrators (TPAs), provider-sponsored health plans, and other payers. The results are better pricing and payment outcomes for clients via the Company’s proprietary analytics and connectivity platform.
Data and common experience confirm that American health service prices vary greatly. Two different Payers for the same procedure and diagnosis at a given Provider can pay significantly different net prices. MacroHealth solves for this by providing an enterprise SaaS marketplace platform where healthcare is purchased more efficiently and at lower costs. It connects payers with the most cost-effective healthcare providers they may not have had access to otherwise. The Company also allows its clients to leverage multiple data sources, including proprietary, U.S. government, and third-party network data, to analyze prior claims and ultimately make smarter plan and network decisions.
Uniquely positioned to grow quickly given the massive opportunity for its technology to lower healthcare costs, MacroHealth plans to use the proceeds from this transaction to continue developing its industry-leading technology and accelerate business growth with additional sales and marketing support. The Company plans to put significant capital directly into hiring new engineers, sales, and marketing representatives in 2020.
“At MacroHealth, our mission is to provide data analytics and technology that enables payers and providers to optimize the buying and selling of health services. By connecting payers with the most cost-effective healthcare providers and enabling a higher level of claims analysis, our clients see significantly lower healthcare costs compared to their competitors,” said MacroHealth Co-Founder and CEO, Virgil Bretz. “We’re excited to work with the healthcare and technology experts at NewSpring to bring this powerful platform to more organizations in need.”
With over 25 years of entrepreneurial experience in healthcare and technology, CEO Virgil Bretz represents exactly the type of innovative, growth-minded leader with which NewSpring Healthcare seeks to partner. Coupled with NewSpring’s deep domain expertise and passion for investing in the sector, there’s a unique opportunity to leverage this innovative technology in a way that can help modernize the healthcare landscape.
“The MacroHealth team is using technology to rewire the way healthcare is purchased for the better,” said NewSpring General Partner, Brian Murphy. “The ongoing COVID-19 pandemic has only highlighted and amplified the continuing need for innovation and technology in the healthcare space and the value proposition of creating a more cost-efficient healthcare purchasing process will be even more critical in this changed market.”
As part of the transaction, Brian Murphy will join the Board of Directors.
MacroHealth’s purpose is to create Intelligent Health Markets™. The MacroHealth platform combines data analytics and system connectivity to reduce health prices and operating costs. The company focuses on building relationships, knowledge, and technology that enable payers and providers to optimize the buying and selling of health services and ultimately reduce healthcare costs. MacroHealth was formed in 2017 with the merger of Plotkin Health and VIDA Health.
NewSpring partners with the innovators, makers, and operators of high-performing companies in dynamic industries to catalyze new growth and seize compelling opportunities. The Firm manages over $2.0 billion across four distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt. Having invested in over 150 companies, NewSpring brings a wealth of knowledge, experience, and resources to take growing companies to the next level and beyond. Partnering with management teams to help develop their businesses into market leaders, NewSpring identifies opportunities and builds relationships using its network of industry leaders and influencers across a wide array of operational areas and industries. To learn more, visit www.newspringcapital.com.