New Mountain Capital and Ciox Health today announced the acquisition of ArroHealth, a leading provider of chart retrieval and risk adjustment services for health plans and provider groups. This merger will strengthen Ciox’s ability to deliver workflow-driven processes and technology to facilitate the management and exchange of protected health information. Through deep client relationships as a trusted partner to both providers who hold health data and those who are requesting it (including health plans, law firms, life insurance companies, and clinical researchers), Ciox has pioneered the two-sided market for exchange of health information.
“This combination will enable us to offer our clients even broader access, greater levels of service, and enhanced workflow integration so that they are able to achieve operational improvements, exceed business objectives, and improve patient outcomes,” said Ed Coleman, chief executive officer of Ciox Health. “ArroHealth has an excellent reputation for innovation and client-focused leadership, and we are thrilled to bring them into the Ciox family.”
“We are excited for this exceptional opportunity to join with Ciox Health. It is an ideal organization and culture for our team to continue their pursuit of client success,” said Glen Moller, chief executive officer of ArroHealth. “We look forward to adding value to Ciox Health’s managed record retrieval solutions, and also offering enhanced capabilities to each company’s client base. I am delighted to play a role in bringing these two great companies together.”
The merger will enable the combined company to offer requester clients improved service levels due to enhanced geographic coverage and the integration of advanced analytics capabilities to improve the percentage of charts collected and turnaround time. Furthermore, the combined organization will have a joint commitment to technology innovation in the space, and will have greater resources and talent to invest behind these efforts. Ciox’s provider clients will also benefit from greater efficiencies by streamlining touch points, aggregating medical record requests, and reducing provider abrasion during the release of information process.
“The acquisition of ArroHealth is a key step towards advancing the leading platform for two-sided, technology-enabled clinical data exchange in the U.S.” said Matt Holt, managing director at New Mountain Capital and chairman of Ciox Health. “New Mountain is committed to the Company’s goal of improving interoperability to help all healthcare constituents compliantly access and derive valuable insights from clinical data.”
SunTrust Robinson Humphrey served as exclusive financial advisor to ArroHealth, while Leerink Partners advised New Mountain Capital and Ciox Health.
ArroHealth is committed to helping health plans and provider groups close care gaps and achieve payment accuracy. It does so by delivering a complete suite of intelligent risk adjustment and HEDIS solutions to Medicare Advantage, Commercial and managed Medicaid health plans and provider groups. The company’s full-service offerings — including analytics, medical record retrieval, data aggregation, and risk adjustment coding — helps its clients accurately represent the impact of their risk adjustment and HEDIS programs, and improve insights into quality metrics for their members. To learn more, visit www.arrohealth.com.
About New Mountain Capital
New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity, and credit funds with approximately $15 billion in aggregate capital commitments. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit www.newmountaincapital.com.