Pamplona Capital Management said Wednesday that it invested in Patientco. Financial terms weren’t announced. Atlanta-based Patientco provides cloud-based patient payment technology.
LONDON & NEW YORK–(BUSINESS WIRE)–Pamplona Capital Management is pleased to announce it has made a strategic financial investment in Patientco, a leading payment technology company built specifically for healthcare. With patient payments often constituting as much as one third of hospital revenues, more than 500 hospitals and physicians practices nationwide have already turned to Patientco to address this fastest growing piece of the healthcare revenue pie.
Pamplona’s financial commitment will support Patientco in its pursuit of key growth initiatives that will further establish the company as a market leader in patient payment technology, including:
• Accelerated expansion of Patientco’s sales footprint nationally through the central and western United States.
• Increased market leadership with Patientco Essentials, Patientco’s newest payments offering that allows healthcare providers to automatically manage, consolidate and reconcile every patient payment across all their point-of-service, patient access, business office and 3rd party locations.
• Development of valuable functionality with the nation’s leading integrated healthcare systems and enhancement of interoperability with new and existing strategic healthcare IT partners.
Pamplona’s investment in Patientco also includes a commercial agreement to embed Patientco’s offerings into Pamplona’s MedAssets Revenue Cycle Management (RCM) and Precyse business, which were both acquired by Pamplona in 2015 and are being merged in 1Q16. The combination of services and technologies across patient access, health information management (HIM), central business office, patient payments and accounts receivable positions MedAssets RCM and Precyse as the most complete end-to-end integrated solution in the market.
“Patientco’s patient payment solution addresses a great need for healthcare providers across the country. Pamplona chose Patientco after a careful examination of several payment solutions and we believe the company is clearly differentiated from its competitors,” said Jeremy Gelber, M.D., Partner at Pamplona Capital Management. “Pamplona’s investment not only allows Patientco to reach a broader audience, it makes MedAssets/Precyse the first company to offer integrated services across both insurance and patient payments, further cementing its position as the most complete end-to-end integrated revenue cycle services and technology company in the market.”
The agreement paves the way for Patientco to embed its payment solution into MedAssets’ RCM services and Precyse’s HIM services, immediately extending Patientco’s reach to more than 3,000 health systems and 1,000 ambulatory care centers across the country. As a result, Patientco, which has experienced rapid growth and again doubled its annual total processing value (“TPV”) in 2015, expects to accelerate its goal of processing $10 billion in annual TPV by the end of 2018.
“Working with Pamplona reinforces our trajectory as the go-to partner for any healthcare provider or healthcare IT vendor that processes patient payments,” said Bird Blitch, co-founder and CEO of Patientco. “Historically, payment processing and healthcare haven’t worked well together, but we are changing that. With Pamplona’s support, we will continue in our mission to eliminate the payment burden so that providers can focus on delivering care and patients can experience a streamlined, clear payment process.”
Patientco has established itself as a leader in the patient payment space. The company combines revenue cycle technology and payment processing, allowing both to work together seamlessly. Patientco’s proprietary technology – created in-house by the industry’s leading software and technology developers – allows healthcare providers to process 100% of all payment types, providing one platform to manage every type of patient transaction across multi-facility networks. Patientco’s solution addresses the leading pain point for healthcare providers as they manage increasingly complex revenue cycles.
Pamplona’s investment in Patientco is the second financing round for Patientco since its founding in 2009, following a 2012 investment from BlueCross BlueShield Venture Partners LLC (“BCBSVP”) and Chicago-based Sandbox Industries.
“Healthcare payments continue to be a massive opportunity to create positive change for patients, providers, and payers alike,” said Tom Hawes, M.D., Chairman of the Board for Patientco and a Managing Director of Sandbox Industries representing BlueCross BlueShield Venture Partners. “We are thrilled to see this funding for Patientco, a company on a mission to be that positive change.”
Patientco will remain an independently operated company, led by Bird Blitch and guided by a passionate, experienced team determined to help make healthcare better.
ABOUT PAMPLONA CAPITAL MANAGEMENT:
Pamplona Capital Management is a London and New York based specialist investment manager established in 2005 that provides an alternative investment platform across private equity, fund of hedge funds and single manager hedge fund investments. Pamplona Capital Management, LLP manages over USD 10 billion in assets across a number of funds for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds. Pamplona is currently managing its fourth private equity fund, Pamplona Capital Partners IV LP, which was raised in 2014. Pamplona invests long-term capital across the capital structure of its portfolio companies in both public and private market situations. Please see Pamplonafunds.com for further information.
Patientco is the market-leading provider of cloud-based patient payment technology that empowers healthcare providers to optimize and increase patient revenue cycle efficiency. Patientco goes beyond basic payment processing to connect every patient payment event throughout multi-facility healthcare networks—delivering unrivaled visibility into and control over the patient revenue cycle. The result is improved cash flow, reduced A/R days, cost-saving efficiencies and increased patient and provider satisfaction. For more information, visit www.patientco.com/why-patientco.
ABOUT BLUECROSS BLUESHIELD VENTURE PARTNERS:
BlueCross BlueShield Venture Partners, L.P. is a corporate venture fund licensed by the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield companies. The fund invests in promising emerging companies of strategic relevance to Blue Cross and Blue Shield Plans. Sandbox Industries is the exclusive provider of investment management services to BlueCross BlueShield Venture Partners. For more information, please visit www.bcbsvp.com.