Housatonic has sold ParaRev to CorroHealth, a portfolio company of The Carlyle Group
ParaRev, a leader in healthcare accounts receivable recovery and resolution management, works as a virtual extension in hospitals’ central billing offices to help resolve and collect more insurance accounts receivables faster, and improve operating margins through a seamless and collaborative partnership. ParaRev offers healthcare revenue cycle management (RCM) services, from front-end charge master analysis and contract management to end-of-cycle, zero-balance underpayment and denial recovery. The company’s comprehensive services also include a pricing transparency solution, which can help hospitals improve revenue capture while remaining competitive in the market. For more information, please visit www.pararevenue.com.
Backed by Housatonic Partners, a San Francisco and Boston-based private equity firm, ParaRev was acquired by CorroHealth, backed by The Carlyle Group, to expand targeted RCM service offerings to the market. The combination of the two companies is highly synergistic in terms of service offerings, customer base and overall strategic vision.
Jerry Connelly, Chief Executive Officer of ParaRev, commented, “We see major opportunities for synergy and convergence in joining CorroHealth, given there is no overlap between our two companies’ services. I’m pleased our existing clients will now be able to benefit from the combined strengths of the two companies.” Pat Leonard, Chief Executive Officer of CorroHealth, added, “The ParaRev team has excelled in taking on and delivering in several niche areas in the RCM space. These areas are typically overlooked by the various vendors in the space. Focusing on these often-ignored opportunities including zero-balance underpayments and denial recovery will be a valued offering for the clients we serve.”
Mike Siano, Managing Director in Lincoln’s Healthcare Group, commented, “As the healthcare industry navigates a challenging market environment, tech-enabled solutions that drive improvements in the revenue cycle and healthcare payments are of increasing importance. This transaction represents a highly complimentary and compelling combination. It was a pleasure working with the Housatonic and ParaRev teams, and we look forward to seeing the continued growth and success of the business in the future.”
Housatonic Partners is a private equity investment firm founded in 1994, with more than $1.3 billion in capital under management. The firm invests in growing, profitable businesses with highly recurring revenue. Housatonic Partners has backed exceptional management teams in more than 90 small-to-mid-size companies over the last 25 years. For more information, please visit www.housatonicpartners.com.
CorroHealth sits at the center of the revenue cycle revolution. Fundamental operations of the revenue cycle are supported through its expert teams while it recasts the role of clinicians through automation. This shift to a true clinical revenue cycle helps CorroHealth achieve its core purpose — exceed client financial health goals. In October 2020, TrustHCS, Visionary RCM, T-System and RevCycle+ joined forces and were named CorroHealth to provide a greater breadth of reimbursement cycle, risk adjustment and quality solutions to health systems and payers. For more information, please visit www.corrohealth.com.
The Carlyle Group
Founded in 1987, The Carlyle Group is a preeminent global investment firm based in Washington, D.C. The firm has a total of approximately $300 billion assets under management and prefers to invest through means of buyouts and growth capital. Carlyle invests across four segments which include corporate private equity, real assets, global market strategies and solutions. The firm invests across a wide variety of sectors including healthcare. Specifically, the firm invests in healthcare services, outsourcing services, companies running clinical trials for pharmaceutical companies, managed care, pharmaceuticals, pharmaceutical-related services, healthcare information technology, medical, products and devices. For more information, please visit www.carlyle.com.
Lincoln's healthcare industry experience and deep knowledge of the buyer universe allowed them to orchestrate a customized, efficient and expeditious process. Their thoughtful counsel along the way led to an exceptional outcome for both ParaRev and CorroHealth. We appreciate their guidance and partnership and look forward to the continued success of the team.
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