Acquisition cements Advantage Health as a ‘Top 15’ medical billing provider in the US.
Wakefield, MA -April 5th, 2010– Brook Venture Partners today announced that Brook and its co-investors have sold AHP Billing Services, Inc. (AHP), a former division of Anodyne Health to AdvantEdge Healthcare Solutions (AHS). This transaction is part of the planned sale of the two divisions of Anodyne Health Partners. The software division of the company was previously sold to athenahealth (NASDAQ: ATHN) in 2009. The transaction will expand AHS’ offerings in pathology billing, radiology billing and multi-specialty billing for hospital-based and office-based physicians.
Since Brook’s investment in September of 2006, AHP, the billing and coding services division of Anodyne Health, has grown revenues by more than four times. Co-Investors with Brook include Frontier Capital, Brooke Private Equity Advisors, and the Small Enterprise Growth Fund. “With robust BI capabilities already in place, AHP has been able to grow the business substantially faster than its competitors in the industry. We are very pleased with this outcome and feel that AHP CEO Lee Larson and his team have done a terrific job building the company” said Walter Beinecke, a Partner at Brook Venture Partners and a board member of AHP Billing.
In October 2009, athenahealth acquired the business intelligence (BI) portion of AHP’s predecessor company, Anodyne Health Partners, from Brook and other co-investors. At the same time, Anodyne’s billing and coding business was spun-out into a separate company called AHP Billing Services, headed by Lee Larson.
“AHS provides a unique opportunity for AHP customers,” said Larson. “Being part of a leading billing company with a significant customer base means our clients will have even more services and resources available to them, including the AHS InfoEdge dashboard and reporting tools. In addition, we can help expand AHS’ offerings in pathology, radiology, and office-based billing solutions to an even greater number of customers.”
As part of the transaction, Larson will remain with AHP, serving as Senior Vice President and head of AHS New England operations. AHP’s 100 employees will also join the AHS team. They will remain in their current location in Falmouth Maine, which will become AHS’ fifth processing location in the U.S.
Triple Tree, LLC represented AHP as its advisor in this transaction.
About AHP Billing Services (AHP)
AHP was originally funded By Brook and its’ co-investors in 2006. Anodyne Health provided both revenue cycle management, and a business intelligence tool that visualizes billing data. In October 2009, athenahealth (NASDAQ: ATHN) acquired Anodyne Health Partners, and the investors spun-out and retained the outsourced billing and coding business in a separate company called AHP Billing Services, Inc. AHP serves physicians throughout the United States from its operations center in Falmouth, ME. www.ahpbs.com.
About AdvantEdge Healthcare Solutions (AHS)
AHS is a leading provider of physician billing and practice management services and software to hospital-based physician groups, other specialty physician practices, and ambulatory surgery centers (ASC’s) throughout the United States. AHS’ state-of-the-art technology efficiently collects financial information and speeds the reimbursement of third-party claims and patient payments, enabling physicians to maximize revenue and decrease their billing and practice management costs, frequently in dramatic ways. The AHS commitment to clients is “More money, faster. Practice financial data, available anytime, anywhere. Regulatory compliance, guaranteed. And, Client First service.” AHS is an IBM Business Partner for physician billing solutions. www.ahsrcm.com.
Brook Venture Partners provides expansion stage capital through Brook Venture Fund I, Brook Venture Fund II and other co-investment funds to Information Technology and Medical Technology companies located in the Northeastern United States. The firm focuses on initial investments, typically under $10 million, and specializes in both financing and providing the strategic and planning support necessary to rapidly scale and accelerate sales and marketing activities. Brook is headquartered outside Boston in Wakefield, MA. For more information, call 781-295-4000 or visit www.brookventure.com