The acquisition will create the first unified healthcare payments platform with both commercial and government payer connectivity, resulting in greater value for providers
NEW YORK and OVERLAND PARK, Kan. and LOUISVILLE, Ky., Aug. 12, 2020 /PRNewswire/ -- Waystar, a leading provider of healthcare payments software, today announced a definitive agreement to acquire eSolutions, a revenue cycle technology company with unique Medicare-specific solutions. In bringing these two industry leaders together, Waystar will be the first technology to unite both commercial and government payers onto a single payments platform.
Founded in 1999, eSolutions' technology maximizes revenue collection, accelerates cash flow, and reduces administrative burden across numerous sites of care. The company has over 6,000 payer connections and maintains a powerful and growing data set of billions of transactions. In addition to hospitals and ambulatory providers, eSolutions has deep expertise in serving the post-acute market across the entire revenue cycle, including skilled nursing, senior living facilities, home care, hospice, federally qualified healthcare centers (FQHCs), and durable medical equipment providers. eSolutions is backed by Francisco Partners.
Medicare has become the largest payer in the United States and as baby boomers age, the mix of insurance coverage is increasingly shifting to Medicare. Historically, providers have had to leverage two different systems – one to handle commercial claims, and another to handle Medicare. For healthcare providers, leveraging a single, end-to-end platform to manage both private and government payments solves a major pain point and creates significant efficiencies, freeing up time to deliver care.
"Together, Waystar and eSolutions will deliver unprecedented innovation to the industry, helping healthcare organizations accelerate revenue collection while reducing administrative expenses and repetitive tasks," said Matthew Hawkins, Chief Executive Officer and board member of Waystar. "Uniting our companies' data sets will further power Waystar Hubble, our artificial intelligence solution, providing access to even greater insights and value for our clients. We have long-admired eSolutions for its unique Medicare-specific revenue cycle capabilities, which are a perfect complement to the Waystar platform. We are excited to move forward as one team."
"eSolutions is thrilled to be joining forces with Waystar, a company like ours that relentlessly focuses on delivering exceptional customer service," said Gerry McCarthy, Chief Executive Officer of eSolutions. "The combination of our technology platforms and data solves a major pain point in revenue cycle management to drive stronger results for our clients, partners, and for healthcare."
Waystar has integrated several other transformational technologies onto its single instance cloud-based platform since uniting Navicure and ZirMed in 2017. Recent acquisitions include Recondo, a patient estimation and prior authorization technology, PARO, a presumptive charity scoring solution, UPMC's Ovation, a claims monitoring tool, and Connance, leveraging predictive analytics to offer agency manager, advanced propensity to pay (AP2P), and presumptive charity. Waystar is backed by EQT, Canada Pension Plan Investment Board, and Bain Capital.
"We are excited to support Matt Hawkins and the Waystar management team in its acquisition of eSolutions," said Eric Liu, Partner at EQT Partners. "This acquisition will be transformative for Waystar and an exciting step toward delivering an even more comprehensive end-to-end technology platform for Waystar's customers."
"eSolutions is a special company with a laser focus on helping their provider customers get reimbursed for care provided with ease," said Ezra Perlman, co-president of Francisco Partners. "The company's growth and innovation during our five plus years of partnership have been amazing, and we are thrilled that this combination will allow the company to deliver ever greater value to its customers."
The transaction is expected to close later this year, subject to customary conditions and approvals.
Deutsche Bank acted as financial advisor to Waystar, and Simpson Thacher & Bartlett LLP provided legal counsel. William Blair and TripleTree acted as financial advisors to eSolutions, and Kirkland & Ellis LLP provided legal counsel.
Waystar provides next-generation, cloud-based technology that simplifies and unifies healthcare payments. The Waystar platform removes friction in payment processes, streamlines workflows and improves financials for providers in every care setting. Waystar products have won Best in KLAS® or Category Leader every year since 2010 and earned multiple #1 rankings from Black Book™ surveys since 2012. The Waystar platform supports more than 450,000 providers, 750 health systems and hospitals, and 5,000 payers and health plans. Waystar is backed by EQT, Canada Pension Plan Investment Board, and Bain Capital. For more information, visit waystar.com or follow @Waystar on Twitter.
eSolutions is a healthcare technology company working to strengthen providers' revenue health so they can focus on what really matters – their patients. Our powerful, easy-to-use revenue cycle and workflow management tools, paired with our actionable data analysis and insights, improve efficiency, minimize denials and reduce time to revenue for our clients. Our essential solutions – focused on eligibility, claims, data & analytics, audits & denials, and quality & compliance – save providers time and money in an increasingly complex industry. For more than 20 years, providers of all types, including the nation's largest post-acute care organizations and health systems, have trusted us to deliver innovative, dynamic solutions and second-to-none client care. We are driven by a passion to provide solutions to our clients' tough challenges and to care for our clients the way they care for their patients. eSolutions is backed by Francisco Partners. For more information, visit www.esolutionsinc.com.