By Nicola Leske
Jan 8 Bain Capital Ventures and Spectrum Equity
have taken minority stakes in healthcare software provider
MedHOK for $77.5 million.
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
"Along with care and quality, we believe that compliance and
risk mitigation will continue to be top priorities for health
plans and that MedHOK`s platform is very well-positioned to
address these needs," said Jim Quagliaroli, managing director at
Tampa, Florida-based MedHOK, or Medical House of Knowledge,
offers software-as-a-service for health plans, hospitals and
accountable-care organizations such as Kaiser.
MedHOK was founded in 2010 by Anil Kottoor, who previously
worked as chief information officer at WellCare Health Plans Inc
and chief application development officer at WellPoint
Inc. Its services are used by more than 22 million
health plan members, the company said.
The company, which is profitable and has more than 100
employees, is seen as a future candidate for a public listing or
a sale, people familiar with the matter said, asking not to be
identified because the matter is not public.
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.