Healthcare revenue cycle software provider Waystar has agreed to buy Patientco in a deal that bolsters its healthcare price transparency and modern payment options for patients and providers. The deal is valued at more than $450 million, according to Bloomberg.
Waystar, backed by private equity firm EQT and Canada Pension Plan Investment Board, said its revenue cycle software helps healthcare providers, including doctors and hospitals, collect money from health insurers and the government for the services they provide. The software supports more than 500,000 providers, 1,000 hospitals and health systems, and 5,000 payers and health plans, and the company annually processes claims for about 40% of the US population.
Patientco is a consumer-focused payment technology company that helps patients understand their healthcare costs upfront.
According to Patientco, its platform facilitates more than $2 billion in patient responsibility annually. It provides estimates, payment plans, financing options, financial education and counseling, and consolidated statements to more than 30 million patients.
EQT and CPPIB bought Waystar from Bain Capital in 2019, with the latter retaining a minority interest in the company.
Thirty million patients use Patientco’s communications and payments business, backed by Accel-KKR and Blue Venture Fund. It was valued at $82.5 million in a 2018 funding round, according to data provider PitchBook.
“Waystar’s purpose is to simplify healthcare payments. Patientco is the perfect partner for Waystar because it helps us transform the patient financial experience and significantly reduce wasteful administrative costs, which are the biggest pain points in healthcare,” said Matthew Hawkins, Chief Executive Officer and board member of Waystar.
“Patients are more responsible for their healthcare expenses than ever before, and they expect modern, consumer-friendly interactions from healthcare providers and insurers. Together, we will simplify how patients engage with healthcare providers and provide transparency, empowerment, and ease of use to plan and pay for healthcare. Providers will benefit from increased patient satisfaction and fuller reimbursement.”
Simpson Thacher & Bartlett served as legal counsel to Waystar, and Nelson Mullins Riley & Scarborough served as legal counsel to Patientco.
One hundred thirty-six digital health companies were acquired in the first half of 2021 compared to 83 in 1H 2020.