|By Business Wire||
|January 8, 2014 08:08 AM EST||
MedHOK (Medical House of Knowledge), a leader in providing a single platform for care, quality and compliance for health plans, PBMs and other risk-bearing entities, announced today that Bain Capital Ventures, the venture and growth capital affiliate of Bain Capital, and Spectrum Equity, a leading growth equity firm focused on the information economy, have invested an aggregate of $77.5 million to acquire minority stakes in the Company.
“Our vision for MedHOK was to create a platform that improves quality of care by enabling our stakeholders to proactively manage care in a compliant manner,” said MedHOK CEO Anil Kottoor. “Our technology team brought that vision to life and, as a result, MedHOK has positively impacted the lives of more than 22 million health plan members. As we move into the next phase of growth, we believe there are significant benefits to partnering with two of the nation’s premier private equity firms with proven track records in healthcare. I look forward to leveraging the experience and guidance of Bain Capital Ventures and Spectrum Equity as we work together to continue to drive MedHOK’s growth and maximize its market potential.”
“We are excited about partnering with MedHOK, a company with the foresight to recognize and respond to healthcare’s shift to a performance-based care model that links reimbursements to quality of outcomes rather than quantity of transactions,” said Jeff Crisan, Managing Director at Bain Capital Ventures. “MedHOK bridges the disparate silos of medical and pharmacy to deliver a member-centric experience and improved care for its customers.”
“Along with care and quality, we believe that compliance and risk mitigation will continue to be top priorities for health plans and that MedHOK’s platform is very well-positioned to address these needs,” said Jim Quagliaroli, Managing Director at Spectrum Equity. “As a rapidly growing software platform addressing a large and complex market opportunity, MedHOK is a great fit for Spectrum Equity, and we look forward to working with Anil and the MedHOK team.”
MedHOK’s unique Software-as-a-Service (SaaS) model allows clients to rapidly deploy and easily maintain MedHOK’s scalable solutions, for lower up-front and ongoing costs. MedHOK’s software is fully NCQA-certified for HEDIS®, Pay for Performance and Disease Management performance measures, and is compliant with CMS and State regulations, ensuring consistent application of rules and regulations across the continuum of care.
MedHOK (Medical House of Knowledge) serves risk-bearing entities covering more than 22 million lives, making it one of the healthcare industry’s fastest-growing software-as-a-service (SaaS) companies. MedHOK is a leader in providing an integrated, cloud-based platform that delivers a quality and compliance solution covering both Rx and Medical care for health plans, pharmacy benefit managers (PBMs), accountable care organizations (ACOs) and other risk-bearing entities. MedHOK’s technology was built from the ground up to improve outcomes by addressing the multiple needs of its customers in three critical areas – care, quality and compliance – while promoting workflow efficiencies, reducing redundancies and increasing reimbursement. MedHOK’s platform holds current NCQA certification in HEDIS®, Pay for Performance and Disease Management performance measures.
About Bain Capital Ventures
Bain Capital Ventures is the venture and growth capital affiliate of Bain Capital, which has approximately $70 billion of assets under management worldwide. The firm's history of investing in venture and growth stage companies dates back to 1984 with over 125 venture and growth investments since inception. Bain Capital Ventures manages approximately $2 billion of committed capital, has over 70 active portfolio companies, and has offices in Boston, New York, and Palo Alto. The firm has a long and rich history of successful investing in healthcare, software and business services businesses by working in partnership with management teams to pair talented and passionate entrepreneurs with industry experts, open doors to customers, and collaborate on sound long-term strategies. Several notable prior investments in innovative healthcare companies include Liazon (acquired by Towers Watson), Humedica (acquired by United Health), Liberty Dialysis (acquired by Fresenius) and Minute Clinic (acquired by CVS).
About Spectrum Equity
Spectrum Equity is a leading growth equity firm that provides capital and strategic support to innovative companies in the information economy. Spectrum Equity’s current and historical healthcare investments of note include HealthMEDX, a provider of long-term and post-acute care technology; Net Health, a provider of software solutions for outpatient specialty care; Passport Health Communications, a provider of patient access solutions for hospitals and physicians (acquired by Experian); and QTC Management, the nation’s largest provider of outsourced disability evaluations (acquired by Lockheed Martin). Spectrum Equity is an active investor in Software & Information Services and Internet & Digital Media businesses including Ancestry.com, BATS, EagleView, GrubHub Seamless, lynda.com and SurveyMonkey.