NEW YORK--(BUSINESS WIRE)--Vesey Street Capital Partners, LLC (VSCP) today announced the completed recapitalization of HealthChannels (parent company of ScribeAmerica), a healthcare services organization with a full suite of solutions that enhances provider productivity, streamlines clerical processes and improves health outcomes. With 13,000 employees across 50 states and three countries, HealthChannels is uniquely positioned to help providers meet increased demands around mission-critical activities ranging from electronic medical records documentation to patient navigation, medical billing and coding.
VSCP, a strategic private equity firm dedicated to healthcare services investments, led the recapitalization alongside HealthChannels management team, who will maintain a significant ownership stake and will continue to lead the company’s growth. VSCP originally co-invested in ScribeAmerica in 2014 as part of the Chicago Growth Partners-led recapitalization of the company. In this latest transaction, VSCP and HealthChannels management are joined by the Heritage Group and HealthQuest Capital as equity investors in the company.
“There was significant value creation under Chicago Growth Partner’s leadership, and VSCP looks forward to building on this great foundation,” said Adam Feinstein, founder and managing partner of Vesey Street Capital Partners, and chairman of HealthChannels. “We believe HealthChannels is well-positioned for significant growth since it is providing a value-added solution for physicians and hospitals. The company is committed to improving provider productivity, physician satisfaction and ultimately patient care.”
HealthChannels is comprised of three highly specialized companies:
- ScribeAmerica, the nation’s most frequently used medical scribe company, with a reach of over 30 million patients through more than 1,700 hospital partners.
- QueueLogix, a software and service organization that closes the gap between medical back-office activities and frontline patient encounters through its proprietary SaaS platform and coding and clinical experts.
- CareThrough, a 360-degree care management solution that improves quality of care, patient engagement, and financial outcomes through its highly skilled care navigation coordinators.
“Our strategic partnership with both Chicago Growth Partners and Vesey Street Capital Partners has been a critical driver of our growth," said Dr. Michael Murphy, co-founder and CEO of HealthChannels. "We're excited to further our partnership with the VSCP team, and look forward to continued success, particularly as we roll out our newest verticals, QueueLogix and CareThrough."
“HealthChannels is an exceptional company with an outstanding management team,” said David Chandler, managing partner of Chicago Growth Partners. “We are very pleased to have had the chance to work with Dr. Murphy and Vesey Street Capital Partners.”
Evercore acted as financial advisor to Vesey Street Capital Partners. Lowenstein Sandler and Kirkland & Ellis provided legal counsel to VSCP and Chicago Growth Partners, respectively.
HealthChannels is a group of three distinct, highly specialized companies improving productivity, patient satisfaction and quality of care. ScribeAmerica, QueueLogix and CareThrough collectively meet the full range of increasingly complex healthcare data and documentation needs, improving clinical outcomes through highly-skilled clerical support. The leader in medical scribes, patient navigation and back-office coding and billing coordination, HealthChannels trains and manages more than 12,000 employees across 50 states and three countries.
About Vesey Street Capital Partners, LLC
Vesey Street Capital Partners is a strategic private equity manager founded in 2014 with substantial and differentiated Healthcare Services sector and sourcing expertise. VSCP specializes in middle market buyouts and growth equity investments, with a focus on founder-led businesses with strong cash flow characteristics that create value for hospitals and physicians by enhancing efficiency, improving quality, reducing costs and expanding revenues. The recapitalization of HealthChannels in 2016 marked the firm's fourth transaction since inception, which combine for approximately $400 million in capital deployed. For more information on Vesey Street Capital Partners, visit www.vscpllc.com.