Merger of four companies creates leading solution in network management, claims integrity and payment remittance solutions for healthcare payors
BEDMINSTER, NJ and ATLANTA, GA – Premier Healthcare Exchange (“PHX”), Stratose, GlobalCare and Pay-Plus® Solutions (“PPS”) announced today the merger of their respective organizations, creating the next generation company in claims cost containment and healthcare value management. The merger is designed to bring four best-in-breed companies, each with leading technology solutions, together to form an end-to-end solution to address the ever changing needs of the healthcare community.
The transaction was sponsored by Parthenon Capital Partners (“Parthenon”), a growth-oriented private equity firm that focuses on building franchise companies in the healthcare and financial services sectors. Parthenon is providing both capital and strategic resources to support the innovation and growth initiatives of the new company. As part of the transaction, senior leaders of the predecessor companies have retained significant ownership in the combined entity.
The combined company will offer a powerful, unique technology solution to address the broad claims cost containment and value management needs of healthcare payors including large and medium-sized health plans and TPAs, providers and patients. Combined, the four organizations provide a comprehensive array of network management, claims integrity, payment remittance solutions and analytical services for medical, dental and workers’ compensation claims to over 500 payor clients. In addition, the combined company delivers electronic payments and explanation of payments to over 180,000 healthcare providers and serves patients with provider lookup and medical referral services. The combined company is a leader in new product innovation and technology development with a long track record addressing the complex needs of the healthcare community.
“Strategically, we believe the union of these four great companies will enable us to bring unique, data-driven solutions to the market while expanding on our outstanding individual core services. The combination of industry experience, expertise and relationships will further strengthen our ability to deliver more than just cost containment services. In fact, the new organization will provide a comprehensive solution that produces value management,” said Todd Roberti, Founder of PHX and PPS. “The notion of value management has been an aspiration for some time. As soon as we began working with Parthenon, we realized that their expertise in building franchise companies along with their financial and strategic resources were a perfect match with the assets that we knew were necessary, to fulfill our vision for growth.”
Tina Ellex, President of Stratose adds, “Our respective organizations are thrilled with what this combination will bring to our clients and the healthcare market in general. While we each bring complementary technologies and solutions, we all share a “client first” philosophy and core mission to address the changing needs of our clients. We believe in the power of providing a comprehensive solution from the inception of a claim to its payment, and I know the combined organization will offer an unparalleled value proposition to our clients in the health, workers’ compensation and dental payer markets.”
“We are very excited to be part of building another franchise company in the payor solutions market. We have followed PHX, Stratose, GlobalCare and PPS for many years and always believed in the power of this specific combination of companies. We are pleased to be part of bringing these companies together and the opportunity to partner with the talented management teams,” said Dave Ament, a Managing Partner at Parthenon Capital. ”We look forward to supporting the company in a number of growth initiatives as it continues to bring new solutions and technologies to the market.”
The existing operations of the four predecessor companies will serve as the foundation of the new company with a significant presence in Bedminster, NJ, Atlanta, GA and Clearwater, FL.
Cain Brothers, Inc. advised PHX and PPS in the transaction. Kirkland & Ellis, LLP acted as the legal advisor to Stratose and Parthenon Capital Partners. DLA Piper, LLP acted as legal adviser to PHX and Pay-Plus.
About Premier Health Exchange
PHX (www.phx-online.com) provides advanced network and cost management solutions for health plans. By combining claim processing automation with professional services, PHX seamlessly delivers a timely, centralized approach to healthcare cost management. This approach results in a significant reduction in payment errors, appreciable improvement in the time needed to bring claims to resolution and in savings that substantially reduce the healthcare costs of its clients. PHX solutions are utilized by industry leading insurance companies, Taft-Hartley Funds, Health Maintenance Organizations (HMOs) and Third Party Administrators (TPAs).
Stratose (www.stratose.com) is a marketplace leader providing comprehensive solutions for managing healthcare costs. Stratose utilizes proprietary technology and a suite of products and services to deliver industry leading discounts on medical, dental and workers’ compensation billings by accessing direct provider contracts, PPO networks, provider negotiations, proprietary re-pricing tools including Medicare, to achieve industry leading savings for its national client base.
GlobalCare (www.globalcare.net) is a Georgia based corporation with over 20 years of experience providing medical cost containment and savings management services. GlobalCare is committed to improving America’s healthcare system by empowering Payers, Providers and Patients to make more informed, cost effective and integrated healthcare decisions by delivering advanced cost management and data driven solutions. Payers realize the greatest value on their healthcare dollars both operationally and financially through utilization of GlobalCare’s proprietary technology and industry experience.
About Pay-Plus Solutions
PPS (www.ppsonline.com ) delivers easy, fast and reliable electronic payments and explanation of payments to healthcare providers. The PPS system offers the options of delivering funds electronically via ACH, payment card products and Virtual Reimbursement Accounts (VRA) as well as payment data directly to healthcare Providers, via clearinghouses, FTPS or its web-based portal www.ppsonline.com. PPS is a leading system designed exclusively for healthcare which combines banking functions, claim payments and remittance, as well as, integration with traditional paper processes.
About Parthenon Capital Partners
Parthenon Capital Partners (www.parthenoncapitalpartners.com) is a leading mid-market private equity firm based in Boston and San Francisco. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service industries. Parthenon seeks to be an active and aligned partner to management, either through recapitalization transactions or by backing new executives. Parthenon has particular expertise in healthcare technology and services, financial and insurance services and business services, but seeks any service, technology or delivery business with a strong value proposition and proprietary know-how. Parthenon’s investment team has deep experience in corporate strategy, human capital, capital markets and operations, thereby enabling the firm to pursue complex, multi-faceted value creation opportunities.