In its first two deals since creation, CorroHealth, a portfolio company of private equity firm The Carlyle Group, acquired two separate revenue cycle management (RCM) companies, Aergo Solutions and ParaRev. The financial terms for neither of the transactions were disclosed.
In October 2020, TrustHCS, Visionary RCM, T-System and RevCycle+ merged to become CorroHealth. It provides a greater breadth of reimbursement cycle, risk adjustment and quality solutions to health systems and payers.
Backed by Northstar Capital and founded in 1993, Aergo Solutions solves revenue cycle challenges through a customized mix of services, technology and consulting. Aergo is a leader in denials management and complex claim resolution, A/R outsourcing, patient access and revenue cycle technology.
The acquisition expands CorroHealth’s targeted RCM service offerings to the market. The specialists at Aergo will help CorroHealth address the growing demand for Denials Management and Recovery Services. Cain Brothers, a division of KeyBanc Capital Markets, served as the exclusive advisor to Aergo Solutions.
Backed by Housatonic Partners, ParaRev, a leader in accounts receivable recovery and resolution, works as a virtual extension in hospital’s central billing office to help them resolve and collect more of their insurance accounts receivables faster and improve operating margins. Its comprehensive services also include a pricing transparency solution. Lincoln International served as exclusive financial advisor to ParaRev in the transaction.
These two transactions bring the eHealth deal quantity to 162 acquisitions, YTD, and represent the 33rd and 34th RCM acquisitions, YTD. This is a slight increase from 2021 that saw 154 eHealth deals, 21 of those were in the RCM subsector. The RCM deal with the largest disclosed price of 2022, so far, is R1 RCM acquiring Cloudmed for $4.1 billion.
