Jan 8 Bain Capital Ventures and Spectrum Equity
are expected to take minority stakes in healthcare software
provider MedHOK for $77.5 million, according to people familiar
with the matter.
The two firms, which have a track record of investing in
healthcare companies, are betting on growing demand for cloud
computing services as the healthcare industry shifts to a model
that links reimbursement to performance rather than the number
of transactions, the people said.
Tampa, Florida-based MedHOK, or Medical House of Knowledge,
offers software-as-a-service for hospitals and accountable-care
organizations such as Kaiser.
The company, which is profitable and has more than 100
employees, is seen as a future candidate for a public listing or
a sale, the people also said, asking not to be identified
because the matter is not public.
MedHOK and Equity Spectrum declined comment. Bain Capital
Ventures was not immediately available for comment.
Cloud computing, such as the software-as-a-service MedHOK
offers, can be accessed on demand, allowing clients to reduce
costs by trading local servers for network-based software and
storage in remote data centers.
Bain Capital Ventures, the venture and growth capital arm of
Bain Capital, and investment firm Spectrum Equity have made a
number of investments in healthcare IT.
Bain Capital Ventures' investments in healthcare have
included private benefit exchange Liazon, digital health company
Humedica, dialysis company Liberty Dialysis and walk-in medical
service Minute Clinic - all of which Bain Capital Ventures
Spectrum Equity's investments include HealthMEDX, a provider
of long-term and post-acute care technology and Net Health, a
software provider for outpatient specialty care.
Spectrum Equity also invested in Passport Health
Communications, which it sold to Experian in November
2013, and in QTC Management Inc, which it sold to Lockheed
Martin in September 2011.