Fully automated and integrated company means healthcare payors will realize future benefits
BURLINGTON, Mass. & ALEXANDRIA, Va.–(BUSINESS WIRE)–#HCIT—HealthEdge Software, Inc.® (“HealthEdge”), a provider of the industry’s leading integrated financial, administrative and clinical platform for health insurers, HealthRules® Payor, today announced the acquisition of The Burgess Group, LLC (“Burgess”), an innovative payment integrity software company focused on improving healthcare payment operations through technology.
Complementary Products Result in a Leading Solutions Combination
Steve Krupa, HealthEdge Chief Executive Officer, and Greg Burgess, Founder and President of The Burgess Group, built a strong relationship around their mutual passion to automate the transactional systems for health plan claims processing and payments through a cloud-computing infrastructure.
“Greg and I realized our like-minded mission to enhance operational efficiency for health plans through our next-generation platforms would create momentum in the healthcare payor marketplace,” said Steve Krupa. “We both spearhead entrepreneurial and innovation-driven organizations, and our shared desire to impact healthcare by overcoming the limitations of current solutions, have resulted in our coming together to create a robust, thriving, growth-oriented company built on disruptive healthcare payor technology.”
“After 23 years, I’ve discovered a partner in Steve and the HealthEdge team, who understand our passion in designing and delivering the industry’s first cloud-native payment integrity ecosystem,” said Greg Burgess. “Working together we will accelerate our shared vision to challenge the inefficient status quo in claims administration. As one combined company, we can offer our existing complementary solutions while we collaborate to introduce another industry first: an end-to-end unified claims processing, payment integrity, and adjudication platform capable of delivering first pass payment accuracy to providers. By harnessing cloud technologies, we will bring data integration, reimbursement accuracy and accountability, to an elevated level of precision, empowering the industry to realize point of service payments.”
Future Benefits for the Health Insurance Industry
“The acquisition of Burgess is a great strategic fit for HealthEdge to enter the large, high-growth market of payment integrity, helping address the estimated $1 trillion in wasteful spending in the U.S. healthcare system. This partnership will extend HealthEdge’s best-in-class claims processing to include software-driven payment integrity, actioned before a claim is paid, delivering significant value to health plans beyond what is available in the market today,” said Ram Jagannath, Global Head of Healthcare for Blackstone Growth and Chairman of HealthEdge. “We are excited to invest further in HealthEdge to continue building a market-leading software platform for health insurers.”
HealthEdge’s acquisition of Burgess follows the acquisition of a majority stake in HealthEdge by funds managed by Blackstone (“Blackstone”) in April 2020.
Next-Generation Payor Technology Companies
HealthEdge provides mission-critical next-generation Core Administrative Processing Systems solutions to healthcare payors, enabling them to administer benefits, configure plans, manage providers, and enroll participants seamlessly and efficiently. The company’s products offer a modern, simple user interface, greater flexibility, and a cloud-compliant solution well suited to the increasingly complex and data-rich healthcare environment.
Burgess operates at the intersection of healthcare, finance, and technology, helping leading national, regional, and local health insurers set a new standard of Payment Accountability®. Its platform enables payors with Medicare, Medicaid, and Commercial lines of business to have better relationships with providers, reduce waste, and improve their financial performance. Burgess’ product, Burgess Source®, is the first solution to natively bring together claim payment automation with business intelligence and enables a unified approach to ensure payment accuracy.
TripleTree, LLC served as financial advisor and Debevoise & Plimpton LLP was legal advisor to HealthEdge and Blackstone. Seabrook Partners, LLC served as financial advisor and Vedder Price was legal advisor to Burgess. Terms of the transaction were not disclosed.
About HealthEdge
HealthEdge provides modern, disruptive healthcare IT solutions that health insurers use to leverage new business models, improve outcomes, drastically reduce administrative costs, and connect everyone in the healthcare delivery cycle. Its next-generation enterprise solution suite, HealthRules, is built on modern, patented technology and is delivered to customers via the HealthEdge Cloud or onsite deployment. An award-winning company, HealthEdge empowers health insurers to capitalize on the innovations, challenges and opportunities that await in the new healthcare economy. For more information, visit www.healthedge.com.
About The Burgess Group
Burgess operates at the intersection of healthcare, finance, and technology. The company helps leading American health insurers and ACOs set a new standard: Payment Accountability. The company’s cloud-based platform, Burgess Source, is the only solution that natively brings together up-to-date regulatory data, claims pricing and editing, and real-time analytics tools. This unified approach allows clients to make payments with total confidence and make business decisions with real intelligence. The company is headquartered in Alexandria, VA, with an office in West Hartford, CT, and online at www.burgessgroup.com.
About Blackstone
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with $538 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, growth equity, opportunistic, non-investment grade credit, real assets, and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
Contacts
Media:
Gail Winslow
HealthEdge
+1-978-482-6237
GWinslow@healthedge.com
Matt Brady
The Burgess Group
+1-703-682-0986
Matt.Brady@theburgessgroup.com
Matt Anderson
Blackstone
+1-212-390-2472
Matthew.Anderson@blackstone.com