Healthcare Services Acquisitions in 2016

Vaco’s healthcare IT division acquired Pivot Point Consulting (Seattle) and Greythorn (Bellevue, WA) and combined them into Pivot Point Consulting, a Vaco company, expanding Vaco Healthcare’s EHR implementation, training, optimization and advisory capabilities. The new healthcare IT services business brings together more than 50 employees and about 250 consultants nationwide to support EHR implementations, go-live support, project management and strategic advisory for provider organizations.

nThrive, an Alpharetta, Georgia-based patient-to-payment solutions company, has signed an agreement to acquire Adreima, a Downers Grove, Illinois provider of clinically-integrated revenue cycle services. The acquisition adds patient eligibility determination, enrollment services and strengthened patient advocacy and self-pay collections capabilities to nThrive's revenue cycle offerings and is expected to close prior to year-end 2016.

Capstone Partners advised Avomeen Analytical Services on a recapitalization led by High Street Capital; terms were not disclosed. Avomeen, an Ann Arbor-based provider of formulation, product development and analytical/pharmaceutical testing services, will use the partnership and capital to professionalize business development and pursue further growth.

Vocera Communications acquired Extension Healthcare in an all-cash transaction for approximately $55 million on October 27, 2016. The deal adds Extension Healthcare's Engage clinical integration and alarm-management software to Vocera's clinical communication platform to deepen interoperability with hospital systems, expand product capabilities, and create cross-selling opportunities to Vocera's and Extension's customers.

Convey Health Solutions, a Fort Lauderdale–based provider of technology and benefits administration for government-sponsored health plans, has partnered with New Mountain Capital with co-investment from Eir Partners. The investment will support Convey’s next phase of growth and product/service enhancement; Houlihan Lokey advised Convey and TripleTree advised New Mountain.

Streamline Health Solutions, Inc. acquired the assets of Opportune IT Healthcare Solutions, a technology-enabled provider of coding audit and revenue integrity services, for $1.4 million in cash (approximately 1.1x trailing twelve-month revenue). The acquisition expands Streamline's coding, CDI and revenue integrity capabilities and integrates Opportune IT's audit experience and technology into Streamline's Looking Glass platform to better serve hospitals and physician groups across the United States.

Centre Partners, a New York-based middle market private equity firm, has completed an investment in Bradford Health Services in partnership with the company's management team led by CEO Clay Simmons and CFO Chip Stephens. Bradford Health, based in Birmingham, Alabama, operates 30 clinical facilities across six states offering inpatient, outpatient and residential substance abuse treatment; the partnership is intended to accelerate growth and expand access to affordable care. NXT Capital provided debt financing and Coker Capital Advisors served as financial advisor to Bradford Health.

AMN Healthcare acquired Peak Health Solutions, a health information management company that provides remote medical coding and consulting services, to expand AMN's workforce and revenue cycle solutions. Peak Health Solutions was generating approximately $33 million in annualized revenue with adjusted EBITDA greater than 15%; the acquisition was funded with cash and borrowings under AMN's revolving credit facility and will be included in AMN's Other Workforce Solutions segment.

Crestview Capital Partners has acquired KP Counseling, a state-licensed outpatient mental health and addiction treatment provider based in Rockford, Illinois. Founder Kevin Polky remains as a partner and clinical manager; Crestview says the purchase will help expand its behavioral-healthcare platform and geographic reach across the Midwest.

LLR Partners, a Philadelphia-based private equity firm, has acquired Learn It Systems, a Baltimore-headquartered national behavioral health services provider focused on children with autism and related special needs. Learn It Systems was a portfolio company of Milestone Partners and the transaction positions LLR to support the company's next stage of growth in the fragmented, high-growth behavioral health market.

Cobalt Ventures, the for-profit holding company for subsidiaries of Blue Cross & Blue Shield of Kansas City, has acquired MEDVAL, a provider of Medicare Secondary Payer (MSP) compliance and Medicare Set-Aside services. MEDVAL will join Cobalt's CompAlliance brand to expand managed care and MSP compliance capabilities for workers' compensation and liability insurance clients across the U.S.

Wilmington Medical Supply, an affiliate of Woodbury Health Products (owned by MTS Health Investors), acquired certain assets of Advanced Medical Group, LLC, a Southeastern U.S. distributor of home urological supplies. The asset purchase expands Woodbury’s footprint in the Southeast and strengthens its specialty home urological distribution capabilities; terms were not disclosed.

Affiliated funds of Centerbridge Partners acquired Superior Vision Corporation from Nautic Partners VI. Headquartered in Linthicum, Maryland, Superior Vision is a vision benefits administrator serving employer groups, health plans and government programs and covering over 11 million members; terms were not disclosed.

Riverside Partners, a Boston-based private equity firm, completed a majority equity investment in Bottom Line Systems (BLS), a Crescent Springs, Kentucky-based provider of revenue cycle management technology and services for hospitals and healthcare providers. Financial terms were not disclosed; Riverside said it will invest in BLS's technology and support continued growth and expansion of its client base.

Refresh Mental Health, Inc. has purchased The Center for Eating Disorder Management in Bedford from former owners Laura Clauss and Kathleen Corkery. Approximately 12 employees were retained and Kathleen Corkery will remain as Clinical Director; new ownership intends to maintain and expand eating-disorder outpatient services across New England.

Advanced Dermatology and Cosmetic Surgery (ADCS Clinics) has acquired Kalamazoo Dermatology & Skin Cancer Center, a Portage, Michigan practice owned by Dr. Gerald D. Karabin. The deal expands ADCS's footprint in Michigan and adds clinical, surgical and cosmetic dermatology capabilities — including Mohs micrographic surgery — to its national platform.

Wafra Partners LLC and co-investors Patrick Clifford and James “Hal” Higby acquired Interactivation Health Networks, LLC, d/b/a The Wellness Network from entrepreneurs Joe Covey and Matthew Davidge. The Wellness Network operates the largest multi-platform in-hospital patient education network (including The Newborn Channel and The Patient Channel) with relationships at over 2,300 hospitals; Wafra said the deal is part of a planned build-up in the patient education and engagement industry.

iMedX, a global provider of health information and medical documentation solutions based in Atlanta, has acquired Amphion Medical Solutions, a national provider of technology-driven medical transcription and coding services. The acquisition expands iMedX's capabilities and scale in medical documentation and coding, enabling enhanced service offerings, operational efficiencies, and growth opportunities for clients and employees.

ExamWorks Group, Inc. acquired Advanced Medical Reviews, Inc. for $30.0 million in cash plus an earnout of up to $9.8 million. The acquisition adds AMR’s web-based peer review platform and mobile application to ExamWorks’ suite of independent medical examination and review services to expand the company’s technology-enabled capabilities.

Tailwind Capital, through its portfolio company National HME, has merged with and acquired Therapy Support, Inc., a multi-state durable medical equipment (DME) provider serving the hospice and long-term care markets. The acquisition (announced Jan. 6, 2016) expands National HME’s geographic footprint and strengthens its DME benefit management capabilities with Therapy Support’s 21 locations across eight states.

Advanced Dermatology and Cosmetic Surgery (ADCS Clinics) has acquired Greater Washington Dermatology/Capital Dermatology, a multi-location dermatology practice with offices in Annapolis, Bethesda, Olney and Rockville, Maryland. The deal adds four Mid‑Atlantic locations and clinicians to ADCS's growing national dermatology platform as part of its ongoing acquisitive expansion.