Friday, October 22, 2021
MediStreams, a leading provider of remittance, reconciliation, and payment automation revenue cycle management solutions for healthcare providers, is pleased to announce that TT Capital Partners (“TTCP”), a leading healthcare private equity investor, has provided a growth equity investment to fuel ongoing business momentum. Founded in 2009, MediStreams has grown quickly with investments by the founders and angel investors and is well-positioned for continued success.
“With our new partners at TTCP, we are confident that we can rapidly accelerate our growth to bring additional technology-enabled services to the healthcare revenue cycle market,” said Jim Coyle, MediStreams co-founder and CEO. “Our existing technology is highly scalable, and this investment from TTCP will help us get our services into the hands of more providers interested in driving down the cost of getting paid.”
Healthcare providers often struggle with the high volume and complicated array of payment streams, including paper and electronic payments from payers and patients, and related correspondence. Both the paper and electronic remits need to be reconciled to the financial transactions to ensure the bank account matches the data posted to the practice management system.
MediStreams automates the healthcare receivables process, ultimately increasing the velocity of revenue flow into provider practices. MediStreams handles multiple disparate EOB, ERA and payments channels, integrating with provider banks, clearing houses, lockboxes and practice management systems, where fully reconciled payment transactions must be posted in a timely and accurate manner. The company reconciles payments to the claim and to the bank deposit, ensuring that only fully funded transactions are posted. MediStreams also manages the complex array of correspondence documents in online workflow engines tailored to each client’s specifications. At the core of the MediStreams technology lie a proprietary engine for extracting key data elements from paper to reduce manual labor and a neural network of payer mapping and predictive analysis that route batches of work to ensure 24-hour turnarounds.
“Many providers are still using inefficient manual processes to manage receivables,” said TTCP Principal Donnacha O’Sullivan. “MediStreams enables clients to efficiently outsource these processes and provides insights into the back end of the claims, which helps them improve their submission. The company has a proven track record of developing products that are attractive to providers, including the popular Lockbox offering which reduces costs and accelerates revenue flow. TTCP is pleased to partner with MediStreams to fund the company’s continued growth.”
“TTCP checked all the boxes we were seeking in a strategic investment partner,” Coyle said. “They have unmatched healthcare focus, a demonstrated track record, and a strong cultural alignment with MediStreams. We could not be more pleased to have found such a good fit. With the resources of TTCP, we know we can continue our growth trajectory by attracting top talent and accelerating product development.”
Croft & Bender served as financial advisor and Morris, Manning and Martin served as legal advisor to MediStreams for the transaction. Bass, Berry & Sims served as legal advisor to TTCP.