Healthcare IT Introduction

Market Commentary

  • Healthcare technology assets continue to garner significant interest from both strategic and financial sponsors, driven by increasingly regulatory complexity, ongoing technology adoption by the industry’s various constituents, and the pervasive evolution towards value-based care
  • Continued investor appetite for specialty and sector-specific EMR and revenue cycle management solutions, as providers demonstrate a clear preference for purpose-built, best-of-breed solutions in non-acute care settings
  • Healthcare organizations continue to extend their focus beyond price and quality of care, with an increasing focus on patient and provider outreach, communication, and educational tools
  • Sector innovations continue to target niche operational challenges including patient and staff management and monitoring, and compliance requirements with vendors and clinicians
  • Increasingly complex reimbursement arrangements in the face of rising healthcare costs have supported strong payer interest in specialized cost containment and payment integrity solutions

Healthcare IT Taxonomy

screen_shot_2018-11-06_at_12.13.36_pm.pngPatient-Facing Solutions

  • Member Onboarding / Portals
  • Patient Outreach & Campaigns
  • Patient Engagement / Education
  • Digital Wellness Tools
  • Benefits & Consumer-Directed Healthcare Tools
  • Information Tools & Online Media


screen_shot_2018-11-06_at_12.14.55_pm.pngCare Delivery

  • Operational Efficiency
  • Inpatient – Clinical
  • Outpatient – Clinical
  • Post-Acute – Clinical



screen_shot_2018-11-06_at_12.20.44_pm.pngPharma & Devices 

  • Development
  • Trials
  • Commercialization
  • Adherence
  • Regulatory


screen_shot_2018-11-06_at_12.21.13_pm.pngRevenue Cycle Management

  • Charge Capture & Coding
  • Claims Management
  • Adjudication / Appeal / Review
  • Payment Processing
  • Patient Collection
  • Other RCM Tools
  • Regulatory & Analytics


screen_shot_2018-11-06_at_12.22.49_pm.pngPopulation Health & Risk Management

  • PHM Informatics
  • Data Aggregation & Normalization
  • Privacy / Security
  • Information Sharing / Interoperability
  • Population Analytics
  • Care Coordination


HW Healthcare IT Transactions




Case Study: Therapy Brands

HW’s TMT Group advised Therapy Brands on its acquisition by Lightyear Capital and Oak HC/FT.

screen_shot_2018-11-06_at_11.02.09_am.pngRelevant Healthcare IT Sub-Sectors

  • Revenue Cycle Management
  • Electronic Health Records 
  • Practice Management

Company Overview

Therapy Brands is a leading provider of fully-integrated and comprehensive practice management, electronic health record (EHR), payment and revenue cycle management (RCM) solutions for the mental and behavioral health market segments.


Key Value Drivers

  • Provides end-to-end solutions streamlining practice management, EHR, RCM, billing and payments, driving operational efficiencies while improving customer satisfaction and clinical outcomes
  • Rapidly growing, underpenetrated $9B+ market opportunity, continuously expanding via strong industry tailwinds
  • Multiple avenues for continued organic growth including a $190M+ million cross-sell opportunity
  • Serves over 14,000 customers with minimal concentration and an expansive U.S. footprint
  • Strong financial profile with 40%+ organic revenue growth and ~104% average revenue retention

HCIT Public Market Observations1


Public Comparables

Valuation and Operating Metrics1

As of September 30, 2018 ($ in millions)


Select Healthcare IT M&A Transactions1

screen_shot_2018-11-06_at_11.16.10_am.pngWaystar’s Acquisition of Connance

  • Connance is a leading provider of predictive analytics solutions that personalize patients’ financial and clinical experiences
  • Connance’s solutions connect more than 500 hospitals, thousands of physician practices, and more than 80 collection agencies nationwide
  • Waystar’s claims management, revenue integrity, denial and appeal management, and payments solutions merged with Connance’s vendor management and payment optimization solutions will further strengthen the revenue cycle platform

screen_shot_2018-11-06_at_11.18.06_am.pngHarris Healthcare’s Acquisition of Iatric Systems

  • Iatric Systems is a provider of integration tools to help hospitals optimize electronic health records and other IT infrastructure
  • Iatric has used recent partnerships, such as with Hospira, to promote more secure connectivity within EHRs
  • The acquisition of Iatric Systems represents a natural expansion of Harris Healthcare’s offerings in the healthcare IT space

screen_shot_2018-11-06_at_11.20.49_am.pngSyneos Health’s Acquisition of Kinapse

  • Kinapse is a provider of advisory and operational services to the global life sciences industry
  • Kinapse works across the clinical and commercial lifecycle with small-to-mid and large biopharmaceutical companies, including many of the top 20 global biopharma companies
  • An acquisition of Kinapse adds market-leading advisory and operational solutions to enable Syneos to provide customers with end-to-end solutions to accelerate time to market

screen_shot_2018-11-06_at_11.23.09_am.pngVista Equity Partners’ Acquisition of Alegeus Technologies

  • Alegeus is a provider of a comprehensive platform for the administration of healthcare benefit accounts and engagement solutions to help consumers maximize savings and optimize healthcare spending
  • Alegeus administers benefit accounts for more than 30 million members, and processes over $9.1 billion in consumer healthcare payments annually
  • The acquisition offers an opportunity to grow Alegeus through Vista’s expansive network, portfolio of resources, and strategic and operational expertise

screen_shot_2018-11-06_at_11.23.57_am.pngGlobal Payments’ Acquisition of AdvancedMD

  • AdvancedMD is a provider of cloud-based SaaS solutions to small-to-medium sized ambulatory physician practices in the U.S.
  • Advanced MD offers Rhythm, a complete cloud-based suite of smart applications that accelerate collaborative workflows for every roles within the practice
  • The acquisition aligns with Global Payments’ software-driven strategy, and will add significant momentum in a new and attractive market with strong payment fundamentals

What We’re Reading

Amazon Primes To Streamline Healthcare Supply Chain

Modern Healthcare   September 29, 2018

Summit Pacific has fully integrated Amazon Business into its supply chain, taking the hassle and expense out of procurement processes, which allows staff to dedicate more time to patient care. A growing number of providers have started using Amazon’s business services to streamline its operations, reduce shipping costs, and add visibility into its supply chain. Initial downsides of Amazon Business have been identified as lack of vendor verification and questioned ability to handle durable medical equipment.

Read the full article here.

Can Blockchain Transform Healthcare IT? 

ZD Net   September 28, 2018

Dealing with digital transactions involving medical records, patient data, and other sensitive information forces healthcare participants to take additional measures in protecting data integrity and security. Blockchain technology offers the potential to transform healthcare and put the patient at the center of the healthcare ecosystem to increase security, privacy, transparency, and interoperability of health data. The technology has the ability to reduce the friction and costs of current intermediaries, and further connect the fragmented systems to offer better insights and outcomes.

Read the full article here.

Workflow and Platform Innovation Gives Population Health Programs a Boost 

Healthcare IT News   September 25, 2018

Robert Wood Johnson Medical School and NYU Langone are among early adopters implementing new workflows and technologies into its population health efforts, working to further engage patients outside of office visits. In order to continue improving quality of care, these hospitals are continuing to boost resources going into its population health programs. By continuing to centralize information, multiple parties including physicians, patients, and social workers are all able to view results and streamline workflows.

Read the full article here.

HIMSS: 4 Ways Tech Can Help the Opioid Crisis 

Healthcare IT News   September 21, 2018

To take action in battling the opioid epidemic in America, HIMMS issued a release, recommending four ways that the healthcare industry can get involved through the combination of health information and technology. HIMSS’ recommendations included leveraging prescription drug monitoring programs, equipping health workers on the front lines against opioids with interoperable EHR information, using secure technology across the care continuum, and leveraging current technological advances to appropriately share information across multiple disciplines.

Read the full article here.

Healthcare Leads the Way When it Comes to an AI Investment 

Tech Radar   September 15, 2018

Recent studies have revealed that the healthcare sector is leading the industry when it comes to the development of artificial intelligence (AI) research and applications. Google is revolutionizing diagnostics by matching the accuracy of medical experts in diagnosing 50 sight-threatening eye diseases; pharmaceutical companies are employing deep learning in the design of new drugs. Future hurdles for healthcare participants include both technical and feasibility challenges in interpretation and extraction of patient data due to a lack of standard format across entities.

Read the full article here.

M&A Transaction Activity

Select Recent M&A Transactions1



Private Placement Transaction Activity

Select Recent Private Placement Transactions2



Patient-Facing Tools - Landscape

Representative Provider, Payer, and Consumer Tools

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Select HW TMT Transactions



1. Factset

2. Pitchbook 

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