DALLAS, Jan. 4, 2019 /PRNewswire/ -- Payer Compass, a leading provider of healthcare reimbursement technology and price transparency solutions, announced today that it has received a significant investment from Spectrum Equity, a growth equity firm focused on the information economy, and Health Enterprise Partners (HEP), a healthcare-focused investment firm. This investment positions Payer Compass to continue its rapid growth while further extending its comprehensive product offering serving health plans, self-insured employer groups, third-party administrators and brokers.
Payer Compass' core software platform VISIUM™ is a purpose-built healthcare pricing engine and contract management system focused on addressing the complexities of Medicare, Medicaid and Commercial claims pricing. With the rise of healthcare costs and shift to self-funded plans, Payer Compass enables employer groups and health plans to realize significant cost savings by utilizing a Medicare-based reimbursement method as it is more closely tied to the true cost of providing care.
"We are extremely proud of the success Payer Compass has achieved to date as we have grown the company to serve over 125 payer customers, representing nearly 1,000 employer groups and over two million covered lives. We are excited to partner with Spectrum and HEP as their experience scaling leading healthcare technology companies will allow us to take advantage of the large market opportunity in front of us in broader healthcare cost containment and price transparency," said Payer Compass CEO Greg Everett. "We are seeing rapid adoption of our solutions across key markets given the growth of government-sponsored healthcare and reference-based pricing and will continue to see expanding use cases for our unique pricing technology going forward."
"We are thrilled to partner with Payer Compass as the company continues to scale rapidly and impact more of the cost containment landscape," said Jeff Haywood, Managing Director at Spectrum Equity. "The company's proprietary pricing technology and data are highly unique resulting in more accurate pricing, increased auditability and greater provider acceptance." Steve LeSieur, Managing Director at Spectrum, added, "Payer Compass sits squarely at the intersection of several key investment themes for Spectrum within healthcare as the company's platform addresses the rising costs of healthcare faced by self-insured employer groups and health plans as well as the fundamental need for greater healthcare price transparency. We look forward to working with Payer Compass management to expand the company's go-to-market and product efforts to fully capitalize on this growing opportunity."
As part of this transaction, Jeff Haywood, Steve LeSieur and Michael Radonich from Spectrum Equity, as well as David Tamburri from HEP, will join Payer Compass' Board of Directors.
Financial terms of the transaction were not disclosed.
About Payer Compass
Payer Compass is an innovative healthcare technology company providing the most trusted healthcare reimbursement technology and price transparency solutions utilizing both proprietary technology and unsurpassed customer service. The company's core software platform VISIUM™ is used by a wide variety of customers including health plans, self-insured employer groups, third-party administrators and brokers to manage complex healthcare reimbursement and pricing strategies for Medicare, Medicaid and Commercial through its proprietary contract management system and claims pricing engine. The company's single-source reference-based pricing solution, INNOVATE360, consists of not only renowned claim pricing and editing technology, but also the full gamut of provider outreach, patient advocacy and balance bill strategy with appeals support. For more information, visit www.payercompass.com.
About Spectrum Equity
Spectrum Equity is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. For over 25 years, the firm has partnered with exceptional entrepreneurs and management teams to build long-term value in market-leading software, information services and internet companies. Representative investments include Ancestry, Bats Global Markets, Definitive Healthcare, GoodRx, Grubhub, Jimdo, Lynda.com, SurveyMonkey, Teachers Pay Teachers and Verafin. For more information, visit www.spectrumequity.com.
About Health Enterprise Partners
Health Enterprise Partners invests primarily in privately held, middle-market companies in health care services and health care information technology. Central to HEP's strategy is its unique and extensive hospital system and health plan network, 36 members of which are investors in HEP's funds. HEP seeks to invest in companies that improve the quality of the patient experience, expand access and reduce the cost of health care. For more information, visit hepfund.com.
SOURCE Spectrum Equity