RoundTable Healthcare Partners Acquires MedAssist
Acquisition Provides RoundTable a Leading Services Platform Focused on Improving Healthcare Provider Cash Flow and Profitability
LAKE FOREST, IL, May 5, 2003 — RoundTable Healthcare Partners (“RoundTable”), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today that it has acquired a majority interest in MedAssist Holding, Inc. (“MedAssist”). MedAssist is a leading outsourced provider of patient eligibility, accounts receivable management and collections services to acute care hospitals throughout the United States. The MedAssist management team will retain a substantial ownership stake and will continue to lead the organization.
MedAssist operates three businesses that help their clients improve their cash flow and profitability:
- Patient Eligibility Services assists uninsured patients in qualifying for federal, state, and private health care insurance programs, directly enabling hospitals to collect payment for services for which they might otherwise remain uncompensated.
- Outsourced Receivables Management offers highly customized receivables management services to health care providers ranging from project work to ongoing management of all non-delinquent receivables.
- The Collections Division provides debt services for delinquent accounts.
“ RoundTable is an ideal partner for MedAssist,” said Michael A. Shea, co-founder and Chief Executive Officer of MedAssist. “We will benefit from RoundTable’s guidance and operational expertise as we execute our growth strategies. In particular, RoundTable’s long-standing industry relationships will help MedAssist attract new customers and increase our visibility as a national leader.”
“ We are excited to be chosen by MedAssist as an equity partner,” said Joseph F. Damico, Founding Partner of RoundTable, who will serve as Chairman of the Board of MedAssist. “MedAssist is well positioned to benefit from increased outsourcing by hospitals of non-core activities. Their value-added services directly improve upon fundamental profitability and cash flow challenges faced by healthcare providers. We have been impressed with their management team and employees. They have an exceptional track record serving their customers with a focus on the patient.”
As part of the transaction and to finance further growth opportunities for MedAssist, RoundTable facilitated the successful completion of new senior credit facilities and a private placement of subordinated notes. The senior credit facilities were led by Antares Capital Corporation with GE Healthcare Financial Services and National City Bank as co-documentation agents and participants in the facilities. MedAssist’s subordinated notes were issued to Massachusetts Mutual Life Insurance Company and National City Equity Partners. Other financial terms of the transaction were not disclosed.
RoundTable’s investment strategy targets companies in the healthcare industry that fall within the expertise and experience of the firms’operating principals. The MedAssist acquisition immediately follows the investment made last week in American Medical Instruments Holdings, Inc. (“AMI”), a specialty medical device manufacturing company. MedAssist marks RoundTable’s fourth platform investment since the firm’s formation in 2001. Other companies in the RoundTable portfolio include:
- Sabex Inc., a leading manufacturer and distributor of generic injectable pharmaceuticals; and
- Vanguard Medical Concepts, Inc., the nation’s leading medical device reprocessor.
“ We have adhered to the strategy we outlined during our fund raising,” said Lester B. Knight, Founding Partner of RoundTable. “ We are utilizing our knowledge, experience and relationships to successfully identify and invest in our targeted healthcare market segments. By capitalizing on our strong operating expertise, we then partner with our companies’ management teams to maximize their growth and profitability.”
RoundTable Healthcare Partners, Lake Forest, Ill, is an operating-oriented private equity firm focused exclusively on the healthcare industry. The partners of RoundTable have significant experience in managing, operating, acquiring and financing multibillion-dollar diversified healthcare companies. RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com.
MedAssist Holding, Inc. is a leading national provider of outsourced cash cycle management solutions to the healthcare industry. The company improves cash flow for healthcare clients through its comprehensive offering of patient eligibility qualification, accounts receivable management and collections services. Based in Louisville, KY and with numerous strategically located regional offices close to clients, MedAssist serves more than 425 hospitals throughout the United States. More information about MedAssist can be found at www.medassistgroup.com.AMI is a specialty medical device manufacturing company focused on interventional diagnostics, ophthalmology, and wound closure.
AMI serves hospital, clinic and physician office customers through its direct sales forces and distributors on a global basis. The company also manufactures components on an OEM basis to other medical device manufacturers. AMI has approximately 1,350 employees, 10 manufacturing facilities located in the United States, Puerto Rico, the United Kingdom and Denmark, and is based in Lake Forest, IL.
Sabex Inc. is a leading manufacturer and distributor of generic injectable pharmaceuticals. Formed in 1980, Sabex develops, manufactures and distributes generic small volume injectables, ophthalmics, suppositories, and other pharmaceutical products in Canada, the U.S., and other international markets. Sabex’s FDA-approved manufacturing facilities produce generic drugs in critical specialty product categories, including cardiovascular, analgesics, psychotherapeutics, anti-infectives and parenteral nutrition.
Vanguard Medical Concepts, Inc. is the nation’s leading medical device reprocessor, providing a broad range of reprocessing services to more than 600 health care facilities nationwide. Since 1991, it has reprocessed more than 5 million devices, from EP catheters and orthopedic burrs, bits and blades, to suture packs and DVT sleeves. Vanguard leads the industry in the science and technology of reprocessing, carrying a certification of ISO 9001 with specific design controls for medical device reprocessing. Vanguard’s headquarters are in Lakeland, FL. More information can be found at www.safe-reuse.com.