Leading Healthcare Payer Technology Platform Healthation, Inc. Attracts $14 Million Investment
Lisle, Ill.(June 5, 2013) Healthation, Inc. (“Healthation” or the “Company”), a leading provider of core administrative systems for traditional and emerging healthcare payers and administrators, today announced a $14 million Series B investment led by ABS Capital Partners, a leading investor in later-stage growth companies, with participation from Hughes & Company and existing investor SilverStream Capital. Healthation will use the funds to accelerate the Company’s continued growth with expanded sales and marketing while building additional operations, service and development capabilities. As a result of the financing, ABS Capital General Partner Mark Anderson and Hughes & Company Managing Director Travis Hughes will join the Company’s board of directors.
“Traditional systems alone just can’t adapt quickly enough to the rapid changes in healthcare, and that’s where Healthation comes in,” said CEO Darin LeGrange. “Our approach addresses these challenges quickly, with a speedy implementation process, configurable features, and the power needed to satisfy our partners and their customers. With this new injection of capital we’ll be better able to provide what our customers need – and that ultimately means they can be more competitive in this shifting market.” LeGrange joined Healthation in late 2012 and has already made meaningful impact on the Company expanding offerings and broadening Healthation’s channel partner relationships.
Healthation offers healthcare payers a robust and flexible technology platform to meet the challenges in administering healthcare benefits, including medical, dental, vision, pharmacy and life insurance. The Company currently serves customers in multiple payer segments including traditional managed care payers, state-based health insurance marketplaces, third party administrators and non-profit consumer operated and oriented plans. New risk sharing business models and relationships between healthcare providers and payers are expanding the definition of who pays for healthcare beyond traditional insurance companies. Consumers, healthcare providers, employers and payers will all be impacted. In addition to changes to the definition of a payer, there are also significant developments in the ways in which participants may be paid.
“Healthation is poised to capitalize on the dynamic changes in the healthcare market, and with a leader like Darin, the Company has seen accelerating demand for their solutions” said ABS Capital General Partner Mark Anderson. “We’re impressed by how quickly he’s already grown and refined the Company. This kind of progress will allow Healthation to acquire more customers as payers and providers have realized the need to immediately accommodate varied payers and payment arrangements.”
Healthation’s market-based segmentation strategy has five associated solution bundles, built to address the specific needs of challenges to these unique users:
• Commercial Healthcare Payers and Administrators;
• Consumer Operated and Oriented Plans (CO-OPs);
• Health Insurance Marketplaces;
• Medicaid Management Information Systems (MMIS); and
• Accountable Care Organizations and Collaboratives (ACOs)