“The GE and API Healthcare systems are such a good fit and perfectly align with GE’s Industrial Internet strategy,” said Mike Swinford, president and CEO of GE Healthcare Services. “With this acquisition, we are now able to address a significant portion of hospital operating costs – from assets to patient and labor – with a mix of software, real-time data, powerful analytics and professional services.”
API Healthcare’s software and analytics products include staffing and scheduling, patient classification, talent management, human resources, payroll, time and attendance, business analytics, and staffing agency services. The company’s products are used by more than 1,600 hospitals and staffing agencies. Francisco Partners first invested in API Healthcare in November 2008. The company was founded in 1982 and is headquartered near Milwaukee in Hartford, WI (www.apihealthcare.com).
According to GE, improving operational efficiencies is critical for healthcare administrators today. Patients wait to be admitted and discharged. Doctors wait for test results. Staff wait for assignments. Rooms wait to be cleaned. Every hour spent waiting represents billions of dollars in costs to hospitals in aggregate each year. API Healthcare’s product offerings will expand GE Healthcare’s current Hospital Operations Management portfolio, which gives hospitals real-time access to operational data.
“Labor costs represent over 50 percent of hospital operating budgets,” said Michael Swinford, President & CEO, GE Healthcare Services. “With this acquisition, GE Healthcare will be able to address a significant portion of hospital operations costs – assets, patients and labor – with a mix of software, real-time data, powerful analytics and professional services.”
“Health care productivity is more important than ever for hospitals as more patients enter the system and operational costs continue to climb,” said John Dineen, President & CEO, GE Healthcare. “In addition to clinical systems, hospitals need operational management systems to drive enterprise-wide efficiencies, reduce unnecessary costs and enable improved patient care. Over the next 5-7 years, we believe sales of these systems will accelerate towards double-digit growth and GE Healthcare will lead the way.”
Francisco Partners makes investments in technology companies with transaction values ranging from $50 million to $2 billion. Transaction structures include buyouts, divisional divestitures, recapitalizations, restructurings and growth equity financings. Francisco Partners is headquartered in San Francisco (www.franciscopartners.com).
“As the demands of an aging population increase and the greater challenges associated with a changing workforce take hold, operational efficiency has never been more important. We are excited to expand our capabilities and address customers’ toughest challenges together with GE,” said J.P. Fingado, President & Chief Executive Officer, API Healthcare.
GE Healthcare provides medical technologies and services that are used to meet the demand for increased access, enhanced quality and more affordable healthcare around the world. Products and services include medical imaging, software & IT, patient monitoring and diagnostics, drug discovery, biopharmaceutical manufacturing technologies and performance improvement services (www.gehealthcare.com/en/).
API Healthcare was advised by Spurrier Capital Partners (www.spurriercp.com), a technology-focused investment bank headquartered in New York.
© 2014 PEPD • Private Equity’s Leading News Magazine • 2-14-14