WEST JORDAN, Utah, Jan. 11, 2013 /PRNewswire/ -- TruHearing, which provides discount programs offering significant savings on digital hearing aids and services to health plan members, today announced that it has completed a private equity transaction with Sorenson Capital.
Sorenson Capital acquired a significant minority interest in TruHearing in late December, positioning the Utah-based company to continue its rapid growth. TruHearing is the nation's first state-approved Discount Medical Plan Organization to provide considerable savings to health plan members on state-of-the-art digital hearing aids from five of the world's leading manufacturers and TruHearing's private label selection.
"Sorenson Capital's investment in our company speaks volumes about TruHearing's potential in the marketplace and will allow us to deliver an even greater advantage to our health plan members, provider network, corporate partners and employees," said TruHearing CEO Lindsay Atwood. "TruHearing will benefit from Sorenson's expertise and a common philosophy and set of values that will help us continue to build for the future."
As part of the agreement, Sorenson Capital will receive two seats on TruHearing's board of directors. TruHearing's board now consists of Ralph Atkin, founder of SkyWest Airlines; Steven D. Bench, entrepreneur/investor, founder of Heatizon Systems and co-founder of Grand Valley Transmission Company; Fraser Bullock, a co-founder and a managing director of Sorenson Capital, the President and CEO of the Salt Lake Organizing Committee for the Olympic Winter Games of 2002 and an original partner of Bain Capital; Scott Frazier, a founder of the Utah Angels venture group; Tommy Macdonald, Sorenson Capital vice president; and TruHearing CEO Lindsay Atwood.
"We've been very impressed with TruHearing's strong strategic position, value proposition, and potential for sustained growth as we've watched them for several years," said Bullock. "We're looking forward to helping guide the company to even greater success during this next phase."
Atwood founded TruHearing in 2003 with the goal of delivering brand-name hearing aids and professional hearing services at affordable prices, improving quality of life for more than 150 million health plan members nationwide. Initially developed at the request of health plans to help reduce member costs, TruHearing's programs offer discounts on digital hearing aids and services, which can save members and their extended families thousands of dollars. TruHearing also works with a nationwide network of more than 2,800 audiologists and hearing instrument specialists who provide expert advice and professional services at discounted rates.
The TruHearing MemberPlus program works like a warehouse club membership, saving members up to $1,300 off average national retail prices for a yearly membership fee of $108. TruHearing is waiving the fee through 2013 for participating health plan members.
The program also offers an opportunity to add up to four extended family members (parents, grandparents, siblings, uncles/aunts) for a membership fee of $79 per guest member per year. MemberPlus also offers a 45-day money-back guarantee on membership and all purchases. For more details about TruHearing, visit www.TruHearing.com.
ABOUT SORENSON CAPITAL
Sorenson Capital (www.sorensoncapital.com) is a private equity fund that provides small- to middle-market buyout and growth equity investments with a particular focus on opportunities in the western United States. Sorenson Capital is managed and controlled by West Rim Capital; both are headquartered in Salt Lake City, Utah.
TruHearing (www.truhearing.com) is the nation's first state-approved discount medical organization to provide health plan and employer group members deep discounts on the latest hearing aid technology. TruHearing also provides access to expert advice and discounted professional hearing services, delivered through a contracted network of more than 2,800 hearing professionals. Founded in 2003 and based in Utah, TruHearing provides significant savings through direct purchasing from five of the world's leading hearing aid manufacturers. TruHearing also has contracts with more than 45 health plans, providing discounted hearing aids to more than 150 million participating health plan members, their families and extended families. TruHearing is not available to the general public. Individuals can access TruHearing programs through participating health plans and employer groups. For more information, visit www.truhearing.com or www.truhearingmemberplus.com. Employers can learn more by contacting TruHearing's National Business Department at 877-396-7188. Hearing care professionals can learn more about joining the TruHearing network of providers by calling 877-396-7192 or emailing email@example.com.
THIS IS NOT INSURANCE. TruHearing provides discounts to contracted health care plans and enrolled employer groups for hearing aid sales and professional services. Professional services for fitting, programming and three adjustment visits are included in the price of the aids. The customer is obligated to pay for testing, and all other post-fitting hearing care services, but will receive a discount from those health care providers who have contracted with TruHearing.
For Florida and Oklahoma residents: The Member may cancel membership within 30 days, and receive a full refund of fees. The Member must return hearing aids within 30 days of purchase to receive a full refund of the purchase price. In Florida, the DMPO does not make payments directly to providers. As with all Members nationwide, fitting fees, programming fees and first three adjustment visits are included in the price of the aids.