Management Health Solutions, Inc. (MHS), a leading provider of supply chain management solutions to hospitals and healthcare providers across the United States, announced today the completion of a $7.0 million Series B equity investment led by Enhanced Equity Fund, L.P. (Enhanced Equity). Radius Ventures, LLC (Radius), the company's existing institutional investor, also participated in the financing round.
“We are eager to begin our relationship with Enhanced Equity because their expertise in the healthcare services and healthcare information technology sectors, coupled with their vast network of industry relationships, will make them a valuable partner as MHS grows”
The Series B investment was used to fund the company's recent acquisition of AtPar, Inc., a provider of mobile technology solutions that increase efficiencies in managing clinical supply inventories primarily within the hospital setting. The investment will also fund continued growth and expansion of the company's suite of hospital supply chain management offerings.
"We are eager to begin our relationship with Enhanced Equity because their expertise in the healthcare services and healthcare information technology sectors, coupled with their vast network of industry relationships, will make them a valuable partner as MHS grows," said William Zierolf, president and CEO of Management Health Solutions, Inc.
"Enhanced Equity's current and ongoing commitment to MHS strengthens our financial foundation and is critical to our ability to continue to deliver innovative supply chain management solutions that assist our hospital clients in controlling the rising cost of healthcare while improving patient safety."
Enhanced Equity is a lower-middle market private equity fund focused on growth capital investing within certain sectors of the healthcare industry. It is currently investing out of its second fund and manages funds in excess of $500 million.
"We are keenly interested in investing in healthcare enterprises that reduce system costs in delivering healthcare nationwide," said Brett Fliegler, partner at Enhanced Equity.
"MHS's solutions are squarely centered on increasing efficiencies within the hospital setting which, in turn, lower costs and improve capital utilization for the hospital. We see great potential for MHS to play a key role in shaping the future of clinical supply chain management in the healthcare industry, particularly with MHS's recent acquisition of AtPar which further transforms MHS's capabilities to develop and advance its OPTIC solution."
The addition of AtPar's mobile technology complements MHS's Optimal Inventory Control (OPTICSM) model - the company's proprietary process of clinical inventory optimization - by adding handheld inventory tracking technology to its suite of supply chain management solutions.
Enhanced Equity joins MHS's existing institutional investor, Radius Ventures, a venture capital firm focused on leading-edge health and life sciences companies.
"MHS's partnership with Enhanced Equity brings MHS a terrific capital partner with dedicated healthcare industry expertise," said Daniel Lubin, managing partner of Radius and member of MHS's board of directors.
"Having worked with MHS for two years, we have never been more excited about the importance of the company's value proposition to our hospital partners. MHS is well-positioned to enhance its existing offering and develop key new products and services, all fueled by the ongoing commitment by Enhanced Equity and Radius."
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