Osceola Capital, a lower middle-market private equity firm focused on services businesses, announced today the acquisition of PayrHealth, Inc. (“PayrHealth”), a leading provider of medical reimbursement and related services.
Founded in 1994, PayrHealth consults small and medium healthcare providers across the United States on payor portfolio and growth strategies by strengthening or entirely outsourcing traditional managed care departments. “PayrHealth has successfully positioned itself as a leader in the highly complex payor contracting space over the course of its 25-year existence,” said Ben Moe, Managing Partner at Osceola Capital. “We are extremely pleased with this opportunity to enter the healthcare space and look forward to working with the leadership team to expand the customer base and continue building upon the company’s strong foundation.”
Erik Sewell, Vice President at Osceola Capital, added, “Small and medium healthcare providers are a massively underserved segment, particularly from a payor contracting standpoint. PayrHealth helps providers optimize their contracting strategy, a vital element of the provider’s business model and ability to generate revenue. We see major potential to expand the service offering in this market.”
Armando Cardoso will serve as CEO of the Austin, Texas based company. Mr. Cardoso has previously advised and led healthcare teams across investment banking, private equity, healthcare providers, healthcare insurance companies and healthcare vendors. Most recently, he led a national team at Ascension, one of the largest health systems in the country.
“I’m thrilled to join PayrHealth because we can make best-practices accessible – they don’t need to be reserved for only the largest or best-funded industry stakeholders,” said Mr. Cardoso. “Hiring skilled, fulltime managed care contracting talent is simply out-of-reach for most. PayrHealth offers a valuable alternative to small and medium healthcare providers who need to strengthen and maintain their payor relationships. I look forward to growing our service offerings and team nationally.”
PayrHealth represents the fifth platform within Osceola Capital’s current fund. Senior debt financing was provided by Acorn Street Capital. DLA Piper acted as legal counsel to Osceola Capital.
About Osceola Capital Management
Osceola Capital is a Tampa-based private equity firm that invests in lower middle-market services companies, typically with EBITDA of $2 million to $10 million. Osceola has extensive experience partnering with management teams to execute buy-and-build strategies and drive long-term value creation. To learn more, visit www.osceola.com.
