AccuReg, a provider of front-end revenue cycle management solutions for health systems and hospitals, secured debt financing from Elm Park Capital Management, a Dallas-based private investment firm.
The terms of the deal were not disclosed.
The company plans to use a part of the debt funding to repurchase all outstanding shares from its sole minority partner. The financing will also help fund the company’s expansion.
Ian Whelan, CFO/COO of AccuReg, said: “We are delighted to begin this new chapter, and these funds will help accelerate our ability to grow through product development and strategic acquisitions that transform the revenue cycle from the front-end.”
According to the company, the AccuReg cloud-based platform utilizes automation and artificial intelligence to improve patient experience and revenue capture at the front of the revenue cycle, where cost is significantly less. The platform predicts and prevents denial-causing errors by combining an exception-based workflow, a continuous learning quality assurance rules engine, intelligent eligibility, benefits validation, and complete prior authorization management.
The platform also provides the patient with out-of-pocket price estimates, payment processing, and financial assistance qualification.
“Restoring full ownership of AccuReg brings new alignment and energy to our core mission to transform how patients access care and how providers get paid. This clears the path for our deeply experienced team to focus on the front-end of the revenue cycle to ensure our hospital and health system partners continue to increase net patient revenue and meet the demand for more price transparency and digital patient engagement in healthcare,” said Paul Shorrosh, founder and CEO of AccuReg.
Cloud-based medical billing software companies have raised over $500 million since 2010, according to Mercom data. More recently, Cedar, a developer of end-to-end billing software for hospitals, health systems, and medical groups, closed more than $102 million in Series C funding. The deal includes $77 million in venture capital and $25 million from JP Morgan in venture debt.