Waystar, a provider of revenue cycle management solutions, acquired Recondo Technology, an AI-powered revenue cycle automation platform for healthcare providers. Financial terms of the acquisition were not disclosed.
Recondo is a VC-backed company. It has raised over $36 million according to Mercom data, including the $20 million equity investment from Bregal Sagemount and $16 in debt funding from Lemhi Ventures and Bridge Capital.
With this acquisition, Waystar will consolidate the advanced robotic process automation, artificial intelligence, machine learning, and natural language processing technologies of Recondo’s systems into its cloud-based platform.
“Recondo shares Waystar’s commitment to helping healthcare organizations take the estimated $350 billion of administrative waste out of the revenue cycle,” said Matt Hawkins, CEO of Waystar in in the company press release. “Joining forces will strengthen our AI-powered offerings, which will in turn drive greater value for our clients and a better experience for patients. We have been impressed by the Recondo team and leadership, whose expertise and professionalism will be a strong addition to Waystar.”
Recondo says it serves over 900 hospitals with solutions that connect providers, payers, and patients to ensure revenue cycle efficiency across the care continuum. Recondo processes nearly $4 billion patient estimates and 33 million prior authorizations annually through its patient access solution.
“We were looking for a partner whose vision and capabilities would advance our goal of intelligently simplifying the revenue cycle, and Waystar fit this bill perfectly,” said Jay Deady, CEO of Recondo in the company press release. “With Waystar’s powerful technology stack, talented team and client base, our technology can be more impactful than ever before.”
Waystar recently acquired two digital health companies, Digitize.AI, an AI-powered prior authorization provider, and PARO, a financial assistance predictive analytics solution. In 2018, Waystar acquired predictive analytics solution Connance and claims monitoring capabilities from UPMC’s Ovation.
The EQT VIII Fund and Canada Pension Plan Investment Board agreed to acquire a majority equity stake in Waystar, from Bain Capital Private Equity, for $2.7 billion. Bain Capital retains a minority stake in the Waystar.
According to Mercom’s Q3 & 9M Digital Health Funding and Report, there were 125 Digital Health M&A transactions in first nine months of 2019, compared to 172 transactions in the first nine months of 2018.