MILWAUKEE, Feb. 11, 2021 /PRNewswire/ — Health Payment Systems, Inc. (HPS, the “Company”), an innovator in the healthcare payments space, today announced that SV Health Investors, LLC (“SV”) acquired a majority stake and provided growth financing to the Company. With this transaction, SV adds to its portfolio of growing healthcare technology investments. Hexagon, Inc., a private investment company and one of SV’s limited partners, invested in HPS alongside SV.
Since its inception, HPS has helped self-funded employers in the Upper Midwest reduce the cost of healthcare, while maintaining high levels of provider and patient satisfaction. The Company’s single-statement billing and patient financing services help families combat confusing and unaffordable medical bills, while its guaranteed payment model eliminates providers’ collection costs and risk.
Tom Flynn, Managing Partner at SV who has joined HPS’ board of directors, noted that “medical expenses and debt are a problem for employers, providers and most importantly, patients—particularly during the current pandemic. SV is proud to partner with an organization focused on delivering solutions to patients and their families.”
“SV believes HPS’ innovative, data-based approach is positioned to transform the healthcare payment system. We’re thrilled to be part of HPS’ growth story,” said Elizabeth Schwert, Vice President at SV, who has also joined HPS’ board.
SV’s investment will support HPS’ expansion in the Upper Midwest and beyond. Tom Policelli, SV Executive in Residence, has joined the HPS leadership team as CEO. He partners with Terry Rowinski, who will become the Company’s President.
Previously, Mr. Policelli was a co-founder and CEO of Minuteman Health, an HMO in Massachusetts and New Hampshire. Prior to that, he was co-founder and CEO of Averde Health. Mr. Policelli also ran United Health Group’s consumer-directed health business and founded a new business unit within the company. He began his career at CIGNA Healthcare, and while at Monitor Company consulted with several leading healthcare companies.
“I have known Terry and HPS for several years, and have been impressed from the start. The company has built a strong solution that now can be delivered to more consumers, employers, and providers in its current and future markets,” said Mr. Policelli.
Jeffrey Holdsberg, Managing Director of Caltius Equity and board member of HPS said, “Terry and the HPS team have done a great job of building a highly-effective tool that streamlines the payment experience for both patients and providers. SV is a great partner for HPS as they too, like Caltius Equity, are focused on helping companies grow faster to reach their full potential. HPS will be able to greatly leverage SV’s leading healthcare experience, vast industry and operational network, and proven, long-term investment performance.”
About Health Payment Systems
Health Payment Systems (HPS) is a privately-held healthcare technology and services organization offering solutions to enhance the consumer healthcare billing and payments experience, while driving value to healthcare providers, health insurance companies and employers. HPS’ single-statement billing and patient financing services help families combat confusing and unaffordable medical bills, while its guaranteed payment model eliminates providers’ collection costs and risk. HPS is headquartered in Milwaukee, Wisconsin.
About SV Health Investors
SV Health Investors is a leading healthcare fund manager investing in tomorrow’s healthcare breakthroughs. SV invests across stages, geographic regions and sectors, with expertise spanning healthcare services / technology, medical products, biotechnology, dementia and public equities. With approximately $2.2B in assets under management and offices in Boston and London, SV has built an extensive network of investment professionals and experienced industry veterans. Since its founding in 1993, SV has invested in more than 175 companies, with more than 75 of these having achieved successful acquisitions or IPOs. For more information, please visit www.svhealthinvestors.com.
About Hexagon, Inc.
Hexagon, Inc., founded in 1992, is a diverse private investment company with offices in Denver, CO and Milwaukee, WI.
About Caltius Equity
Caltius Equity, founded in 1999, buys and builds lower middle market companies in the business services, industrial services, IT and managed services and consumer services industries. The Los Angeles-based firm invests from $10 million to $30 million per transaction for controlling or substantial minority ownership positions in businesses generating EBITDA from $3 million to $12 million. Caltius Equity’s creative and flexible solutions facilitate management buyouts, recapitalizations and corporate growth. The firm’s experienced team develops deep relationships with its portfolio companies’ management, helping them grow their businesses and optimize liquidity events. Learn more at www.caltiusequity.com
Lauren Gill, MAG PR
SOURCE Health Payment Systems