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Medsphere Systems Corporation, a provider of end-to-end electronic health records, revenue cycle management, and practice management solutions, secured $40 million in preferred equity investment from TPG Sixth Street Partners, an investment firm with $33 billion in assets under management.

As part of the investment, Lee Mooney, Principal at TPG Sixth Street Partners, will join Medsphere’s Board of Directors.

Since 2015, Medsphere has raised a total of $80 million in funding and acquired six digital health companies, including Wellsoft, a provider of emergency department information systems, and HealthLine Solutions, a provider of healthcare inventory and supply chain management solutions.

In the past four years, Medsphere has grown subscription revenue by over 400% using a combination of strategic acquisitions and organic growth, achieving a compounded annual growth rate of over 50% according to the company.

The Medsphere solutions are intended for inpatient and ambulatory facilities, including specialty clinics, multi-facility systems, and behavioral health hospitals, regardless of size and budget.

“Medsphere represents a compelling opportunity to support a differentiated healthcare technology platform,” said Michael McGinn, Partner, and Co-Head of TPG Sixth Street Partners’ Capital Solutions business. “Medsphere’s portfolio of highly regarded, complementary products allow it to reach a wide range of inpatient and ambulatory providers, and we are excited to partner with them as they enter their next phase of growth.”

Practice Management Software Solutions companies raised $306 million in 2019 compared to $366 million in 2018. Since 2010, Practice Management Solutions companies have raised more than $1.7 billion, according to Mercom 2019 Digital Health Funding Report.

Similar technologies that received funding

HNI Healthcare, a technology-enabled physician practice management company, secured a $65 million.

MedSynergies, a provider of revenue and performance management solutions to healthcare providers, raised $65 million.

Kareo, a provider of cloud-based medical office software for small medical practices including practice management software and billing solutions, raised $55.4 million.