Bain Capital Ventures, Spectrum Equity take purchase minority stake in MedHOK
Minority stakes were acquired by Bain Capital Ventures and Spectrum Equity in MedHOK, a healthcare software provider, Reuters reported. The deal, valued at $77.5 million, came from two investment firms that have a history of backing healthcare companies. As the healthcare industry moves toward a model that connects reimbursement to performance than the quantity of transactions, the report said Bain Capital Ventures and Spectrum Equity are capitalizing on the rising demand for cloud computing services.
Spectrum Equity Managing Director Jim Quagliaroli was quoted in the report as saying, "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."
Founded in 2010, MedHOK or Medical House of Knowledge provides software-as-a-service for health plans, hospitals and accountable-care organizations. It is based in Tampa, Florida. Company founder Anil Kottoor worked at WellCare Health Plans as a Chief Information Officer and at WellPoint Inc as a Chief Application Development Officer. Citing sources, the report also said that the firm, which has a workforce of 100, is profitable and is looked at as potential candidate for a sale or public listing.
MedHOK said its services are being utilized by over 22 million health plan members. One of the features of cloud computing services like that offered by MedHOK is that it can be accessed on demand. This enables clients to lower costs since they can replace local servers with network-based software and storage in remote data centers.
Bain Capital Ventures have made investments in Liazon, a private benefit exchange, Humedica, a digital health firm, dialysis company Liberty Dialysis and Minute Clinic, a walk-in medical service. Bain Capital Ventures eventually exited these investments, the report said. Meanwhile, some of Spectrum Equity's healthcare investment includes HealthMEDX, a service that provides long-term and post acute care technology as well as Net Health, a company that provides software for outpatient specialty care.