CorroHealth, a Plano-based provider of revenue cycle management solutions to health systems and health plans, has received a strategic investment from dedicated healthcare investment firm Patient Square Capital, which is based in Menlo Park, California.
Pat Leonard
“Since its inception in 2019, CorroHealth has grown into a technology and clinically led health care RCM platform,” CorroHealth CEO Pat Leonard said in a statement. “The Patient Square team has a long history of successfully investing in and scaling health care companies. We’re pleased to welcome them and look forward to leveraging our investors’ expertise to continue expanding our capabilities and delivering exceptional value to our customers.”
The amount of the Patient Square investment was not disclosed.
CorroHealth said that current shareholders, including investment funds affiliated with global investment firm Carlyle, TT Capital Partners, Sanaka Group, and CorroHealth management, will remain investors.
Patient Square and Carlyle share joint control of CorroHealth.
“We’re excited to be partnering with CorroHealth’s management team and investors to build upon CorroHealth’s strong track record of organic and inorganic growth,” Patient Square Partner Justin Sabet-Peyman said in a statement. “We have conviction in the attractiveness of the RCM market and believe CorroHealth is well-positioned to continue delivering differentiated tech-enabled solutions to its provider and payer customers.”
Carlyle has been the majority investor in CorroHealth since 2019 and a predecessor business since 2017.
“We are tremendously proud of CorroHealth’s evolution since its founding. We consider the future bright for CorroHealth and are committed to supporting CorroHealth’s continued growth and innovation alongside our new and existing partners,” Carlyle Partner and Global Co-Head of Healthcare Joe Bress said in a statement.
The transaction is expected to close by the end of the year, CorroHealth said.
CorroHealth was formed through the merger of four companies—Visionary RCM, T-System, RevCycle+, and TrustHCS—creating a comprehensive provider of healthcare analytics, RCM, and technology services for hospitals and health systems worldwide. Just last month, CorroHealth expanded by acquiring the Xtend healthcare revenue cycle management business from Navient.
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