Patient Square Capital to Invest in CorroHealth, Carlyle Retains Joint Control

CorroHealth has agreed to a strategic investment from Patient Square Capital, with Carlyle maintaining joint control. This move follows Carlyle's majority investment since 2019 and a history with the company since 2017. The transaction is anticipated to close by the end of the year and will keep current shareholders, including TT Capital Partners and Sanaka Group, invested.

The healthcare revenue cycle management (RCM) landscape is witnessing a significant shift as CorroHealth, a leading provider of RCM solutions, announces a strategic investment from Patient Square Capital (1). Current investors, including Carlyle, TT Capital Partners, Sanaka Group, and CorroHealth management, will retain their stakes, with both Patient Square and Carlyle sharing joint control of the company.

Founded in 2019, CorroHealth has rapidly evolved into a technology-driven, clinically led healthcare analytics platform. Its organic and inorganic growth has attracted the attention of Patient Square Capital, a dedicated healthcare investment firm with a successful track record of scaling companies in the sector (1). This investment reinforces CorroHealth's commitment to expanding its capabilities and delivering exceptional value to its customers.

The RCM market is expected to grow at an attractive rate, driven by the increasing complexity of healthcare reimbursement and the need for technology-enabled solutions (2). CorroHealth, with its clinically led approach and focus on financial performance, is well-positioned to capitalize on this market opportunity.

Carlyle, the current majority investor, has been a key supporter of CorroHealth's growth since 2019, and the company has seen significant progress under their guidance (1). Carlyle Partner and Global Co-Head of Health Care Joe Bress expressed his confidence in CorroHealth's future and commitment to supporting the company's continued growth alongside Patient Square.

The transaction is anticipated to close by the end of the year, with Barclays, TripleTree, Latham & Watkins, and Kirkland & Ellis serving as the respective financial and legal advisors (1).

References:
[1] PRNewswire. CorroHealth Announces Strategic Partnership with Patient Square Capital. https://www.prnewswire.com/news-releases/corrohealth-announces-strategic-partnership-with-patient-square-capital-301654977.html
[2] Grand View Research. Global Healthcare Revenue Cycle Management Market Size, Share & Trends Analysis Report By Component (Services, Software), By End User (Hospitals, Clinics, Physician Offices), By Region, And Segment Forecasts, 2020 - 2027. https://www.grandviewresearch.com/industry-analysis/healthcare-revenue-cycle-management-market