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

Joseph B. Hash

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

The company, which offers digital wellness report and medical doctor apply instruments, reported the financial investment was anticipated to be accomplished in the initial quarter of 2022.  

Chair and CEO Bob Segert will keep on in his situation, reported athenahealth in a push release, as will the current administration group.  

“Our staff members, customers and companions are the supply of our results and inspiration as we build a flourishing ecosystem that provides available, significant-quality and sustainable health care for all,” reported Segert in a statement.  

WHY IT Issues

Athenahealth, which was acquired by private fairness firms Veritas Cash and Evergreen Coast Cash in 2019 for $five.seven billion, states it presently companions with far more than one hundred forty,000 ambulatory care providers in all 50 states and across far more than one hundred twenty specialties.  

In 2020, athenahealth released a new EHR-embedded telehealth resource. According to Jessica Sweeney-Platt, vice president of investigation and editorial strategy, the company has provided 18.4 million virtual appointments around the past 12 months.  

“Now marks a important milestone for athenahealth and our partnership with Veritas Cash and Evergreen Coast Cash, and we are thrilled to operate with Hellman & Friedman and Bain Cash to drive the upcoming section of our development journey,” reported Segert.  

But the vendor has also faced hurdles.   

Prior to that acquisition – which involved a merger with Virence Health and fitness, also owned by Veritas – the company experienced confronted problems, which includes an activist investor 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 announced that the company agreed to pay back $18.twenty five million to take care of Fake Promises Act violation allegations. A spokesperson for the company reported it admitted no wrongdoing less than the settlement.  

Even now, the firm’s new house owners voiced optimism for its future development.  

“Specified our deep expertise in program and health care, we are enthusiastic to operate with Bob and the government group to rapidly scale the enterprise and keep on to innovate and grow along with our most disruptive and revolutionary ambulatory care purchasers to construct the foundations of a multi-sided electronic care network amongst affected individual, payer and company,” Allen Thorpe, companion at Hellman & Friedman, reported in a statement.  

THE Greater Development  

November has found numerous large money moves in the wellness IT space, with program-as-a-company company EverCommerce announcing its new possession of EHR vendor DrChrono and the recently released FemTec Health and fitness obtaining magnificence box company Birchbox and social promoting platform Liquid Grids.

In the meantime, GE reported it would spin off its health care division, GE Healthcare, in early 2023. Virence Health and fitness, which merged with athenahealth, was as soon as GE Healthcare’s benefit-centered care arm.  

ON THE Document  

“Above the class of our thriving partnership with Bob and the administration group, athenahealth has pushed huge development and transformation, reinforcing its situation as the premier health care IT company supporting the major nationwide network of health care providers,” Ramzi Musallam, CEO and managing companion of Veritas Cash, reported in a statement.  

“Next our just take-private and combination with Virence in 2019, athenahealth shipped unmatched benefit to its consumers by significantly rising R&D financial investment resulting in bigger top quality care, lessen prices across the health care ecosystem and all round enhanced affected individual outcomes,” he reported.

 

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

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