Supplier’s Whole Revenue Cycle Files for IPO
Two years after starting its private equity holdings, revenue cycle outsourcing firm Ensemble Health Partners filed for an initial public offering on Wednesday.
The S-1 Ensemble Health Partners form filed with the Securities and Exchange Commission does not disclose the number of shares it plans to offer or their price range. The company has set a proposed maximum bid price of $ 100 million, although that number largely acts as a placeholder. The company plans to list its Class A common shares under the symbol ENSB on the Nasdaq Global Select Market.
Good Help Mercy Health announced in May 2019 he was selling a 51% stake in Ensemble Health Partners to Golden Gate Capital, a private equity firm. The deal called for Cincinnati-based Bon Secours Mercy Health to remain a minority owner, as well as a business partner.
Revenue cycle providers have been a hot investment area for private equity firms, with the strongest candidates being those that offer an end-to-end product like Ensemble Health Partners.
The company announced in June that it had acquired Odeza, a digital consumer communications platform that integrates with electronic health record platforms to simplify and automate interactions with patients.
Founded in 2014, Ensemble Health Partners strives to stand out by praising the experience of its leaders in hospitals and medical practices. The company works with more than 380 US hospitals and 8,000 healthcare providers. Ensemble Health partners reported significant growth last year after adding a record number of new end-to-end customers and achieving record revenues. The company also hired more than 1,500 new employees.
Ensemble Health Partners generated net income of $ 67 million in the six-month period ended June 30, up from about $ 35 million in the prior year period, according to its prospectus. Healthcare providers who have end-to-end contracts with the company racked up $ 21 billion in net patient revenue in the first half of this year, far more than the $ 4 billion recorded for the entire year 2017.
This year, the U.S. Patent and Trademark Office granted five patents on Ensemble Health Partners’ technologies, with six more pending, according to the company.
Goldman Sachs, BofA Securities, Deutsche Bank Securities and Guggenheim Securities are acting as co-book managers for the proposed offering.