Accuity Delivery Systems, the WindRose Health Investors-backed provider of outsourced revenue cycle management services to hospitals, is exploring a sale, according to four sources.
Houlihan Lokey is advising on the sales process, two of the sources said, one of whom said initial bids have been submitted.
Accuity’s trailing 12-month Ebitda sits at approximately $14 million, two of the sources said. One of the sources said the company is marketing run-rate Ebitda in the mid-$20 million range, with hopes of fetching a mid-teens multiple.
New York’s WindRose, formerly MTS Health Investors, completed its investment in Accuity in August 2017.
Led by Founder and CEO Eric Moskow, Accuity offers revenue cycle management services to hospitals through a clinical documentation improvement program, which helps ensure patients’ medical records are properly documented.
The company also provides inpatient coding and quality assurance to ensure appropriate reimbursement is applied, as well as business intelligence tools to streamline the revenue cycle process.
Accuity’s Moskow is a longtime entrepreneur, having previously founded companies including Data Driven Delivery Systems, which is also a former portfolio company of WindRose.
The process comes as WindRose-backed data-driven healthcare marketing firm Medical Knowledge Group seeks a buyer via Harris Williams. Buyouts initially reported on the upcoming process in June.
WindRose in June completed a $200 million dividend recapitalization of myNexus after calling off a UBS-run auction that kicked off last fall, Buyouts reported. In connection with the dividend recap, a source familiar with the matter said the PE firm had so far made close to 15x its money on the healthcare benefits management company.
Also in June, the firm concluded its Harris Williams-run sales process for Ovation Fertility through a sale to Morgan Stanley Capital Partners valued around the ballpark of $150 million, Buyouts reported.
WindRose declined to comment, while Houlihan Lokey and Accuity’s Moskow didn’t immediately return requests for comment on Friday.
Action Item: Check out WindRose’s latest Form ADV: https://bit.ly/35phhst