New York , February 13, 2008 – Funds managed by MTS Health Investors, LLC (“MTS”), a healthcare private equity firm, purchased a majority stake in HealthHelp, LLC from an individual investor, MTS announced today. Terms of the transaction were not disclosed.
HealthHelp, based in Houston, Texas, is a radiology benefit management company that provides a comprehensive set of radiology cost-containment services to health insurers, third-party administrators, preferred provider networks, and self-insured employers. The company’s services cover over 9 million members in all 50 states, Puerto Rico, the Virgin Islands and Guam.
The senior management team at HealthHelp, all of whom have extensive experience in the healthcare management business, will remain with the company.
Oliver T. Moses, a Senior Managing Director at MTS, said, “HealthHelp presents a unique opportunity for MTS to invest in a proven platform in an industry that has attractive underlying growth dynamics. The company’s strong executive leadership and differentiated product offerings have resulted in substantial momentum, as reflected in the approximately two million new members awarded to HealthHelp during the past four months. We look forward to partnering with HealthHelp and are confident that MTS’s extensive relationships within the payor community will further enhance the company’s new business opportunities.”
Cherrill Farnsworth, Chief Executive Officer of HealthHelp, added, “We are pleased to gain the support and backing of MTS’s leading healthcare investment franchise. MTS believes strongly in the value we create for health plan sponsors and is committed to helping us grow. We believe that MTS’s investment will create new value for our company, our customers and our employees.”
HealthHelp, based in Houston, Texas, is a radiology benefit management company that offers quality and utilization management programs to health insurers, third-party administrators, preferred provider networks, and self-insured employers. The Company was founded in 1999 and has grown significantly through expanding its product offerings and broadening its customer base. The Company now operates in all 50 states including Puerto Rico, Guam and the Virgin Islands. Today, the Company focuses on (i) providing physicians with evidence-based clinical information and support when ordering radiology exams, (ii) enabling managed care organizations to identify radiology claims paid in error and adopt new payment policies, (iii) educating plan enrollees and their physicians about the effects of radiation, and (iv) assisting enrollees in selecting imaging centers. For more information, please visit www.healthhelp.com.
MTS Health Investors, LLC, located in New York, is a healthcare private equity firm that makes equity investments in the buyout, recapitalization or growth financing of healthcare operating companies. MTS focuses on businesses that operate in services sectors of the healthcare industry – managed care/health insurance, providers of healthcare services, distributors of medical products and providers of outsourced services to the healthcare industry. The firm also invests in manufacturers of low-technology medical products. For further information, please visit: www.mtshealthinvestors.com.
Caroline Luz Owen Blicksilver Public Relations, Inc. 203-656-2829