An Alabama venture capital and private equity firm is investing in Healthfuse, a Milwaukee company that developed a platform that helps hospitals and health care systems manage vendor sourcing and costs, according to an announcement from the firm.
Terms of the investment from Birmingham-based New Capital Partners was not disclosed.
Healthfuse was founded in 2011 by Nick Fricano, Mike Zimmerman and Jon Myhre.
“Healthcare reimbursement and revenue cycle operations have grown increasingly complex, driving hospitals to work harder with fewer hands and insufficient tools,” said Nick Fricano, Healthfuse co-founder and CEO, in a statement. “NCP has a proven track record of building high-growth businesses that leverage technology to deliver market-leading performance. I look forward to partnering with them to enhance Healthfuse’s comprehensive data platform to enable best practices and benchmarking across a national network of health systems.”
NCP makes investments in companies focused on health, financial and business services. Fricano and Myhre, the company's chief operating officer, and the Healthfuse management team will continue to lead the company, according to the announcement.
Healthfuse provides its platform to more than 150 hospitals and health systems. In the most recent five-year period, the company stated it has helped those health organizations improve vendor performance by $600 million and delivered $140.5 million in collections improvement and cost savings in 2019.
“Healthfuse’s recent growth indicates that the market is increasingly aware of the value of performance-driven, tech-enabled revenue cycle vendor management,” said Adam Cranford, managing partner at NCP. “We are excited to build upon their foundation of success and look forward to actively supporting the team as they enter their next phase of growth.”
