July 20, 2024

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

Cloud computing seller athenahealth introduced Monday that it would be jointly obtained by affiliate marketers of Bain Money and Hellman & Friedman for $17 billion.

The company, which delivers digital well being file and medical doctor practice resources, said the expenditure was predicted to be completed in the initial quarter of 2022.  

Chair and CEO Bob Segert will continue on in his posture, said athenahealth in a push launch, as will the current administration crew.  

“Our employees, customers and associates are the resource of our achievements and inspiration as we make a flourishing ecosystem that provides accessible, large-quality and sustainable health care for all,” said Segert in a statement.  

WHY IT Issues

Athenahealth, which was obtained by private equity companies Veritas Money and Evergreen Coastline Money in 2019 for $5.seven billion, states it at present associates with far more than one hundred forty,000 ambulatory treatment providers in all fifty 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 study and editorial approach, the company has presented eighteen.4 million digital appointments in excess of the earlier 12 months.  

“Now marks a important milestone for athenahealth and our partnership with Veritas Money and Evergreen Coastline Money, and we are thrilled to operate with Hellman & Friedman and Bain Money to generate the following stage of our expansion journey,” said Segert.  

But the seller has also confronted hurdles.   

Prior to that acquisition – which integrated a merger with Virence Health and fitness, also owned by Veritas – the company experienced confronted worries, together with an activist trader marketing campaign from Elliott Administration the stepdown of founder and previous CEO Jonathan Bush amid allegations of sexual harassment and domestic abuse and layoffs of 9% of the workforce.    

And this January, the U.S. Department of Justice introduced that the company agreed to fork out $eighteen.25 million to resolve Untrue Statements Act violation allegations. A spokesperson for the company said it admitted no wrongdoing below the settlement.  

Continue to, the company’s new house owners voiced optimism for its potential expansion.  

“Provided our deep experience in computer software and health care, we are excited to operate with Bob and the executive crew to rapidly scale the enterprise and continue on to innovate and expand along with our most disruptive and ground breaking ambulatory treatment clients to develop the foundations of a multi-sided electronic treatment community among client, payer and service provider,” Allen Thorpe, partner at Hellman & Friedman, said in a statement.  

THE Larger sized Development  

November has witnessed quite a few massive funds moves in the well being IT space, with computer software-as-a-services company EverCommerce saying its new possession of EHR vendor DrChrono and the freshly released FemTec Health and fitness attaining attractiveness box company Birchbox and social advertising system Liquid Grids.

In the meantime, GE said it would spin off its health care division, GE Healthcare, in early 2023. Virence Health and fitness, which merged with athenahealth, was once GE Healthcare’s price-based mostly treatment arm.  

ON THE History  

“About the class of our effective partnership with Bob and the administration crew, athenahealth has pushed huge expansion and transformation, reinforcing its posture as the premier health care IT company supporting the major nationwide community of health care providers,” Ramzi Musallam, CEO and managing partner of Veritas Money, said in a statement.  

“Next our get-private and mixture with Virence in 2019, athenahealth sent unequalled price to its customers by significantly expanding R&D expenditure resulting in larger quality treatment, reduced fees across the health care ecosystem and general enhanced client results,” he said.


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