Primus Capital has made a major growth equity investment in Healthcare Bluebook, an independent provider of healthcare services prices.
Healthcare Bluebook’s purpose is to protect patients by exposing the truth and empowering choice. In every US metro area, local prices for the same healthcare service can vary by 2X-10X depending on where a patient receives care – with no difference in quality or outcomes. Lack of price and quality transparency causes consumers, who are facing ever increasing deductibles and out of pocket costs, to overpay for care.
Similarly, employers who sponsor health benefits also waste billions of dollars on overpriced, low-quality care. Healthcare Bluebook’s simple, intuitive transparency solution allows consumers to find the highest quality care at the best price. Bluebook is used by over 3,000 employers and supports many leading third-party administrators. The company was founded by its CEO Dr. Jeff Rice in 2007 and is headquartered in Nashville (www.healthcarebluebook.com).
Healthcare Bluebook’s current management team will continue to lead the company under Primus ownership. “The investment from Primus and the expertise they bring to Bluebook will help us remain at the vanguard of healthcare transparency and patient engagement,” said Dr. Rice. “We are very fortunate to be partnering with Primus given their industry knowledge and resources as well as their phenomenal track record of helping companies grow rapidly.”
Primus invests from $15 million to $70 million in companies within the healthcare, software, and technology-enabled services sectors. Transaction types include management-led buyouts, control and non-control recapitalizations and growth equity investments. The firm was founded in 1983 and is investing through Primus Capital Fund VII, a $353 million fund closed in 2013. Primus is based in Cleveland (www.primuscapital.com).
“We were attracted to Healthcare Bluebook by the significant value its solutions offer employers and employees by enabling patients to make informed decisions as healthcare consumers,” said Phil Molner, Managing Partner of Primus. “This is of tremendous importance given the continued growth in patient financial responsibility against a backdrop of the increasing prevalence of high deductible health plans and unsustainable long-term medical cost trends.”
“Healthcare Bluebook has had tremendous success to date by offering forward-thinking solutions to the market. We are excited to partner with the team to build upon the company’s legacy of innovation,” said Chris Welch, a Principal of Primus.
Raymond James (www.raymondjames.com) was the financial advisor to Healthcare Bluebook on this transaction.
© 2017 Private Equity Professional | October 6, 2017
