Carlyle Growth to acquire Healthcare Solutions provider, Visionary – ZMR Blog
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Carlyle Growth to acquire Healthcare Solutions provider, Visionary

Carlyle Growth To Acquire Healthcare Solutions Provider, Visionary

The global healthcare sector around the globe is eventually evolving with great speed. Coming on to the recent acquisition, Carlyle Growth, a Global private equity fund, is in a plans to take over the healthcare solution provider, Visionary Revenue Cycle Management, for 420 Crore ($65 Million). The acquisition deal will also be supported by other venture capital investors and company’s promoters, said people aware of the deal.

VRCM based in Chennai has previously raised a funding of Rs 15 Crore led by Indo-US Venture Partners in late back 2010.

The company was founded by Rajesh Surana in 2006. It offers significant solutions related to medical coding service and healthcare revenue cycle management. It also has its footprints in international shores with three delivery locations and fully owned subsidiaries in California and Florida.

A spokesperson from Carlyle refused to talk about the overall transaction while same was done by VRCM. Surana said that the deal is carried out based on confidential terms and Carlyle hasn’t permitted us on this. The healthcare solution provider has more than 250 healthcare clients successfully served by its more than 1,000 employees. The service includes assistance in commercial health plans, medical health plans, risk adjustment program, and audit and quality of care for Medicare.

Carlyle Growth to acquire Healthcare Solutions provider, Visionary

The revenue of the unlisted company was $25 Million and marginal profit was approximately $14 Million. However, the US-based equity fund will be paying 4.5x of the operating profit of the company. The acquirer also plans to merge VRCM with its other business process such as Allsec Technologies.

The US is accounted for holding 80% share of the healthcare RCM market globally. As per the report published, a significant opportunity is anticipated with a growth rate of 11–14% for RCM outsourcing services market that at present valued at $7.5–8.5 Billion.

The healthcare sector also has some management-related services that mandatory for smooth processing of the operations. Post services such as denial management and medical billing are drastically maturing pre-services such as appointment scheduling and eligibility verification and other functional services are also gaining some traction. The investment and acquisition deals in this healthcare sector owing to the streamlined administrative services which have ultimately increased the profitability of the hospitals.

Carlyle has made multiple investments in the country so far; this includes Edelweiss Financial, Newgen Knowledge Works, Allsec Technologies, VBHC Value Homes, GOL Offshore, Visen Industries, and Cyient, Dee Development Engineers.

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