Brook’s investment to drive company expansion
WAKEFIELD, MA — Brook Venture Partners announced today that it has closed a $5.6 million investment in Anodyne Health Partners, a Portland, Maine based provider of business intelligence (“BI”) software and revenue cycle management solutions to hospital-based physician practices and large healthcare enterprises. Brook led the investment syndicate which includes Frontier Capital, Brooke Private Equity Advisors, and the Small Enterprise Growth Fund. According to Walter Beinecke of Brook, “We have great respect for the company’s management and the achievements they have made since founding the company in 2003. This funding will provide the financial resources necessary to drive the company to a prominent position in the industry.”
The company’s BI offering, Anodyne Practice IntelligenceTM, gives provider organizations an information tool that delivers up-to-date analysis on all aspects of billing, receivables, and revenue cycle management allowing business administrators to optimize billing and collections from all payors. According to Michael Funk, Anodyne’s CEO, “Our BI product is filling a real void for large group practices by putting the information they need to drive improved results right at the fingertips of their people”. Anodyne’s product is delivered through a “software-as-a-service” model whereby customers access their information over the internet and pay a monthly subscription fee.
Brook and the other syndicate members indicated that they find the investment opportunity compelling in part due to the double digit growth of healthcare in general, and in particular the substantial and growing need for physician practices and hospitals to actively manage their billing and collections to recapture revenue which has been lost to increased regulatory pressures and declining reimbursement rates. According to Beinecke, other factors also make the investment attractive: “We see a real trend toward the use of BI solutions to solve specific problems in a variety of industries including healthcare; and we are, of course, attracted to the recurring revenue and shorter sales cycles of a ‘software-as-a-service” business model.
According to Michael Funk of Anodyne the company partnered with Brook and the other investors due to their experience with growth stage companies. “We talked to a great number of venture capital firms throughout this process. Brook, as well as other members of our syndicate, truly stood out with their proven track record in helping technology-enabled businesses achieve rapid growth and become market leaders.”
About Anodyne Health Partners:
Anodyne delivers revenue cycle solutions to healthcare provider organizations including physician billing, medical coding and business intelligence (“BI”) software. The company’s BI solution, offered to large provider enterprises, is delivered through a software-as-a-service model over the internet, and is creating a fundamental shift in the manner that healthcare business professionals access information. The company’s billing solution helps small and mid-sized practices drive greater revenues, minimize compliance risk and gain a deep understanding of the business side of their practices. Anodyne currently serves organizations with over 2,000 physicians collectively. To learn more about Anodyne, please visit www.anodynehp.com.
About Brook Venture Partners
Brook Venture Partners provides expansion stage capital through Brook Venture Fund II to information technology and medical technology companies located in the Northeastern United States. The firm focuses on investments of $1-5 million. Brook is headquartered outside Boston in Wakefield, MA. For information call 781-295-4000 or visit www.brookventure.com.