Healthcare Services: Hospital Revenue Cycle Management Service Provider

Partnering with Founders, Focus on growth

In early 2011 we invested in a Southwest-based provider of third party eligibility and other revenue cycle management services for hospitals. Third party eligibility providers work closely with hospital clients in helping their patients become eligible for Medicaid and other third party programs to help cover their cost of care. This segment of the revenue cycle management industry generates between $500 million - $1 billion in annual revenues and has been growing at a steady pace, driven by a continued shift by hospitals toward outsourcing this function to specialized partners. This historical growth is expected to accelerate significantly over the next several years, as healthcare reform is expected to expand the Medicaid-eligible population across the nation by 30-40% in 2014.

The Company has established itself as one of the leading independent players in its sector with a client base that includes over 300 hospitals across 33 states. The company's leadership position has been driven by a combination of its leading-edge systems, highly efficient processes and a well trained workforce.

Serent invested alongside the original founding and executive team members, all of whom are continuing in full-time roles after the transaction. The founders sought a partner who could provide both capital and active support to help drive the company's continued growth. Serent is working closely with the management team to enhance the Company's sales and market expansion efforts and strengthen its operational processes. Serent will also be providing additional capital to support add-on acquisitions in the future.

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