Athenahealth bought by private equity firms Hellman & Friedman, Bain Capital

Cloud computing vendor athenahealth introduced Monday that it would be jointly acquired by affiliates of Bain Cash and Hellman & Friedman for $17 billion.

The enterprise, which delivers electronic well being history and health practitioner follow equipment, mentioned the investment was anticipated to be concluded in the initial quarter of 2022.  

Chair and CEO Bob Segert will continue in his placement, mentioned athenahealth in a push release, as will the recent administration team.  

“Our workers, customers and companions are the supply of our results and inspiration as we generate a flourishing ecosystem that delivers obtainable, substantial-quality and sustainable healthcare for all,” mentioned Segert in a assertion.  

WHY IT Issues

Athenahealth, which was acquired by personal equity firms Veritas Cash and Evergreen Coastline Cash in 2019 for $five.seven billion, states it at this time companions with much more than a hundred and forty,000 ambulatory care companies in all 50 states and across much more than 120 specialties.  

In 2020, athenahealth released a new EHR-embedded telehealth instrument. According to Jessica Sweeney-Platt, vice president of investigate and editorial technique, the enterprise has offered eighteen.four million virtual appointments about the past year.  

“Nowadays marks a major milestone for athenahealth and our partnership with Veritas Cash and Evergreen Coastline Cash, and we are thrilled to perform with Hellman & Friedman and Bain Cash to push the following stage of our advancement journey,” mentioned Segert.  

But the vendor has also confronted hurdles.   

Ahead of that acquisition – which provided a merger with Virence Health, also owned by Veritas – the enterprise had confronted problems, including an activist trader marketing campaign from Elliott Management the stepdown of founder and former CEO Jonathan Bush amid allegations of sexual harassment and domestic abuse and layoffs of 9% of the workforce.    

And this January, the U.S. Office of Justice introduced that the enterprise agreed to pay $eighteen.twenty five million to solve Phony Claims Act violation allegations. A spokesperson for the enterprise mentioned it admitted no wrongdoing below the settlement.  

However, the firm’s new house owners voiced optimism for its long term advancement.  

“Presented our deep knowledge in application and healthcare, we are thrilled to perform with Bob and the executive team to rapidly scale the small business and continue to innovate and expand alongside our most disruptive and ground breaking ambulatory care clientele to construct the foundations of a multi-sided digital care network in between affected person, payer and provider,” Allen Thorpe, associate at Hellman & Friedman, mentioned in a assertion.  

THE Bigger Trend  

November has viewed various major income moves in the well being IT room, with application-as-a-support enterprise EverCommerce announcing its new possession of EHR vendor DrChrono and the newly released FemTec Health attaining elegance box enterprise Birchbox and social advertising and marketing platform Liquid Grids.

In the meantime, GE mentioned it would spin off its healthcare division, GE Health care, in early 2023. Virence Health, which merged with athenahealth, was when GE Healthcare’s price-based care arm.  

ON THE History  

“More than the program of our profitable partnership with Bob and the administration team, athenahealth has driven incredible advancement and transformation, reinforcing its placement as the leading healthcare IT enterprise supporting the largest nationwide network of healthcare companies,” Ramzi Musallam, CEO and controlling associate of Veritas Cash, mentioned in a assertion.  

“Adhering to our just take-personal and combination with Virence in 2019, athenahealth delivered unequalled price to its prospects by substantially increasing R&D investment ensuing in higher good quality care, lower expenditures across the healthcare ecosystem and all round enhanced affected person results,” he mentioned.

 

Kat Jercich is senior editor of Health care IT Information.
Twitter: @kjercich
E-mail: [email protected]
Health care IT Information is a HIMSS Media publication.