Frazier Healthcare Partners Announces Acquisition of Accuity Delivery Systems
On October 26, 2020, Frazier Healthcare Partners, a Seattle-based healthcare investment firm, completed its acquisition of Accuity Delivery Systems (“Accuity,” or the “Company”), a leading provider of physician-led Revenue Integrity and Clinical Documentation Improvement (CDI) services. Frazier is joined in the transaction by 22C Capital and several existing shareholders, including WindRose Health Investors, Accuity’s founder Dr. Eric Moskow, and Accuity’s senior leadership team.
The partnership with Frazier will help accelerate the momentum the Company has achieved as a leading Revenue Integrity and CDI service provider. Accuity will continue to invest in its people and proprietary technology platform to better service its customers. As part of these efforts, Todd Van Meter will join Accuity as CEO and Robert Jones as CFO. Both Todd and Robert bring decades of relevant experience scaling healthcare services organizations and will help Accuity continue its rapid growth trajectory. Frazier Executive in Residence Jim Brady will also take an Executive Chairman position on the Company’s Board of Directors to help guide the Company’s commercial and technology efforts.
Todd Van Meter has over 20 years of experience in hospital revenue cycle management and outsourcing services. Most recently, Todd was President of the Ambulatory Services Division of Optum360, a provider of RCM solutions to physicians. Prior to Optum360, Todd was the President and COO of EOS Healthcare, a hospital RCM provider.
Robert Jones is an experienced CFO of high-growth companies, including most recently at Staywell, an employee wellness and patient engagement platform recently sold to WebMD. He has additional previous experience as the CFO of C3i, a venture-backed IT services firm which scaled revenue nearly 22x in his tenure.
Nader Naini, Managing Partner of Frazier, said, “We are excited to be partnering with Accuity’s dedicated employees to continue to provide best-in-class revenue integrity and CDI compliance services to the company's customers. With Todd Van Meter’s leadership and the experience of Jim Brady, we look forward to bringing additional resources to accelerate and enhance Accuity’s offerings to help customers improve compliance, ensure accurate reimbursement and optimize their operations."
Jamie Wells, President of Accuity, added, “This is a great opportunity for our company, and we are very excited to have Frazier Healthcare and 22C Capital as new partners. Their investment in the business will enable Accuity to accelerate growth, improve operations, deploy analytical and technology-enabled solutions, and most importantly – deliver value to our clients. We look forward to working together with new leadership and want to take this opportunity to thank Dr. Eric Moskow, former CEO, for his vision and entrepreneurial spirit that have guided the company to date.”
Eric Edell, Managing Partner of 22C, said, “We are excited to partner with Frazier and WindRose to support the Accuity management team’s mission to drive value and quality for its healthcare provider partners by leveraging our deep resources in commercial operations, data automation and technology domains, such as artificial intelligence and machine learning.”
Curtis Lane, WindRose Founding Partner, added: “The recapitalization of Accuity by Frazier enables the company to continue to execute on their growth initiatives with an expanded leadership team and additional resources. WindRose looks forward to continuing to partner with Accuity during this next stage.”
Goodwin Procter acted as legal advisor to Frazier, Proskauer Rose acted as legal advisor to Accuity, and Sidley Austin acted as legal advisor to 22C Capital. Houlihan Lokey was Accuity’s financial advisor. Adams Street Partners led the debt financing in support of the acquisition and also made a significant equity co-investment.
About MFO Ventures
MFO Ventures is a Florida-based family office founded in 2022 to manage the Moskow family’s assets and to establish an institutional framework by which it partners with investors. The investment strategy of the family office is engineered to capitalize on the experience and knowledge gained from prior successful ventures and to help growing early-stage and middle-market healthcare services and healthcare technology companies achieve their next level of success. For more information, please visit https://www.mfoventures.com/.
About Accuity Delivery Systems
Accuity is a leading provider of technology-enabled Revenue Integrity and Clinical Documentation Improvement (CDI) services for hospitals and health systems. Founded in 2016, Accuity leverages a physician-led, pre-bill model, to enhance compliance and revenue capture for its clients. The Company’s proprietary technology empowers its physicians to quickly analyze patient records and identify incorrect or missing information that would otherwise impact a hospital’s coding accuracy and case mix index. The Company is headquartered in New York, New York and operates across the United States. For more information, visit: www.accds.com.
About Frazier Healthcare Partners
Founded in 1991, Frazier Healthcare Partners is a leading middle market private equity firm focused exclusively on healthcare. With more than $4.8 billion total capital raised, Frazier has invested in more than 200 companies with transaction types ranging from buyouts of profitable healthcare services companies to venture capital and company creation. Frazier has a philosophy of partnering with strong management teams while leveraging its internal operating resources and network to build exceptional companies. Frazier has offices in Seattle, WA, and Menlo Park, CA, and invests broadly across the U.S., Canada, and Europe. For more information about Frazier Healthcare Partners, please visit www.frazierhealthcare.com.
About 22C Capital
22C Capital is a private investment firm committed to delivering capital and critical resources to companies operating at the intersection of technology enablement and data analytics adoption. The firm has a dedicated focus on the business services, healthcare and financial services sectors. 22C partners with world-class management teams to build companies that are leaders in their respective markets. The firm's operational and technology resources, including its affiliated data science organization, deliver practical, real-world support to help convert businesses' challenges into opportunities and unlock their full potential. For more information, visit: www.22ccapital.com.
About WindRose Health Investors
WindRose Health Investors, LLC makes equity investments in companies that operate within the services sectors of the healthcare industry. WindRose focuses on companies with profitable business models and a demonstrated ability to deliver cost-effective solutions. WindRose manages over $1.2 billion in investments and is currently investing out of its fifth fund. WindRose is based in New York City and invests in companies throughout the United States. For more information, please email WindRose at email@example.com.