Convey Health Solutions, which is backed by New Mountain Capital, has agreed to merge with HealthScape Advisors LLC and Pareto Intelligence. No financial terms were disclosed. The newly combined company will create a healthcare payor technology and services platform. Leerink Partners advised HealthScape and Pareto with Dinsmore & Shohl LLP and Skadden, Arps, Slate, Meagher & Flom LLP providing legal counsel. And, Eir Partners advised Convey and New Mountain Capital while Ropes & Gray LLP was legal counsel.
FORT LAUDERDALE, Fla. & CHICAGO–(BUSINESS WIRE)–Convey Health Solutions (“Convey”) today announced an agreement to merge with HealthScape Advisors, LLC (“HealthScape”) and Pareto Intelligence LLC (“Pareto”), combining Convey’s market-leading set of compliant, cost-reducing member enrollment, service, administration, quality and wellness support solutions with HealthScape’s market leading strategic consulting capabilities and Pareto’s innovative suite of big data analytics. The combination of Convey, HealthScape, and Pareto solidifies the company’s market position as the go-to partner for health plans to optimize member experience and outcomes, ensure compliance, and drive enhanced revenue and profitability. The combined company will serve over 200 customers, including many of the nation’s leading commercial and government-sponsored health plans.
“This merger is transformational for Convey,” said Steve Farrell, CEO of Convey, “We believe the combination of Convey’s industry-leading, purpose-built technology platform with HealthScape’s market expertise and Pareto’s cutting-edge analytics capabilities results in a compelling platform that will allow us to serve our customers in completely new and value-added ways.”
“We have always been impressed with Convey from our observations in the marketplace and could not be more excited to partner with them,” added Arjun Aggarwal, Managing Partner of HealthScape, “Perhaps as important as the immense commercial growth opportunity the merger presents is the complementary culture and shared values between our organizations.”
Creation of a world-class healthcare payor technology and services platform
Convey’s industry leading, purpose-built technology and solutions simplify processes for Medicare Part D and Medicare Advantage programs while driving regulatory compliance and reducing associated administration costs. Convey’s exclusive healthcare focus and proprietary technology platform allow it to efficiently manage end-to-end health insurance processes for its customers, from eligibility and enrollment processing to premium billing and payment processing, reconciliation and other related services.
Founded in 2009, HealthScape is a healthcare consulting firm widely recognized as a thought leader and subject matter expert within the industry. HealthScape is a trusted advisor and partner to the executive leadership of the nation’s premier health plans and has a reputation for actionable, data-backed insights. Founded in 2015 by HealthScape’s founding partners, Pareto has built a market leading big data platform that enables government-sponsored and commercial health plans to improve health outcomes, uncover profitability drivers and resolve payment inaccuracies. Pareto’s advanced data ingestion and normalization infrastructure allows the company to deploy an advanced suite of big data analytics to uniquely serve the growing demands of its health plan clients in an environment of constant regulatory change and a broad-based shift towards value-based care.
“We partnered with Steve Farrell and the Convey team two years ago to build a leading technology-enabled healthcare platform,” said Matt Holt, Managing Director at New Mountain Capital and Board Member of Convey. “The combination with HealthScape and Pareto represents a landmark step in this effort, and we are thrilled to be able to support the company as it continues to grow and deliver unmatched products and services to its customers.”
The combined company will continue to offer a full range of market leading solutions to customers including purpose-built government sponsored plan administration technology, a powerful analytics and revenue optimization product suite, and best-in-class healthcare strategy and compliance consulting services. The leadership teams from Convey, HealthScape, and Pareto will all be staying in place, and the businesses will continue to provide their current solutions and services to customers at the highest levels of quality that have been synonymous with each company’s brand to-date. Both Fort Lauderdale and Chicago will remain flagship offices for the business going forward.
HealthScape and Pareto were advised by Leerink Partners and legal counsel was provided by Dinsmore & Shohl LLP and Skadden, Arps, Slate, Meagher & Flom LLP. Convey and New Mountain Capital were advised by Eir Partners and legal counsel was provided by Ropes & Gray LLP.
About Convey Health Solutions | Convey Health Solutions is a specialized healthcare technology and business process outsourcing services company that is committed to providing clients with healthcare-specific, compliant member support solutions utilizing technology, engagement, and analytics. The company’s administrative solutions for government-sponsored health plans help to optimize member interactions, ensure compliance, and support end-to-end Medicare processes. By combining its best-in-class, built-for-purpose technology platforms with dedicated and flexible business process solutions, through its centers in Florida, Arizona, Illinois, and the Philippines, Convey Health Solutions creates better business results and better healthcare consumer experiences on behalf of business customers and partners. The company’s clients include some of the nation’s leading health insurance plans and pharmacy benefit management firms. Their healthcare-focused teams help several million Americans each year to navigate the complex Medicare Advantage and Part D landscape. Convey Health is a proud partner company to New Mountain Capital (www.newmountaincapital.com). To learn more please visit www.ConveyHealthSolutions.com.
About HealthScape and Pareto | HealthScape Advisors is a management consulting firm dedicated to serving clients within the healthcare industry. We provide consulting services to commercial and government health plans, specialty health organizations, health systems and providers, and healthcare investors. To learn more, visit our website at www.healthscape.com.
Pareto Intelligence is an analytics and advisory company that delivers technology solutions to improve value-based outcomes. These solutions are supported by proprietary algorithms, predictive models, and advanced data science that have analyzed over $100 billion in claims and medical costs, and touched over 14 million healthcare lives. Through this, Pareto demystifies complex healthcare data and delivers actionable insights that inspire smart strategic decisions for clients. To learn more, visit our website at www.paretointel.com.
About New Mountain Capital | New Mountain Capital is a New York based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity, and credit funds with over $20 billion in aggregate capital commitments. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit www.newmountaincapital.com.