HealthMEDX Receives Investment from Spectrum Equity

Ozark, MO - Spectrum Equity and Trident Capital today announced they have made an investment in the business of HealthMEDX, Inc, the leading provider of long term and post-acute care (LTPAC) technology, via an acquisition of the HealthMEDX, Inc. business. They will own a majority interest in the new company, HealthMEDX, LLC.

In connection with the acquisition, Pamela Pure, former President of McKesson Technology Solutions, has joined HealthMEDX as its Chief Executive Officer. Vince Estrada, former SVP Business Development and CFO of Visicu, Inc. will join as EVP of Business Development and Chief Financial Officer. HealthMEDX Co-Founder Charlie Daniels will remain as President and Co-Founder Dan Cobb will remain as Chief Technology Officer. Co-Founder Jim Atteberry will serve as a strategic advisor.

HealthMEDX provides the technology platform required to seamlessly automate the delivery of comprehensive LTPAC and senior services. The interoperable SaaS platform provides skilled nursing, assisted living and independent living facilities; continuing care retirement communities and rehabilitation centers; and private duty home care, certified home care and hospice providers with an integrated, patient-centric solution that extends and integrates the full care continuum. Specifically, the solution provides a patient-centric electronic clinical record with a comprehensive multi-site care plan and an integrated billing platform that supports the unique regulatory requirements of each LTPAC setting. The HealthMEDX Vision Platform is currently used in more than 3,000 locations across the country.

Pamela Pure said, "Post-acute providers are becoming strategic players in the healthcare delivery system. They serve as the cornerstone of care for senior Americans recovering from significant health incidents, for frail and elderly people requiring ongoing management, and for the millions of people working to manage chronic conditions. HealthMEDX provides a highly differentiated technology platform to facilitate organized, proactive post-acute care delivery. The system design inspires team-based care and can provide health systems and post-acute providers with the tools required to align incentives and foster collaborative care. Working with a world-class management team and two outstanding financial partners, we will continue to expand and augment the platform to enable long term and post-acute organizations to prepare for value based payment, support blended payment and actively participate in Accountable Care Organizations."

HealthMEDX Co-Founder and President Charlie Daniels commented, "HealthMEDX is a client-centric organization. We work with skilled nursing facilities, continuing care retirement communities, home care organizations, rehab centers and hospice providers who aspire to use technology to increase quality of care, improve patient safety, reduce costs and dramatically impact the patient experience. These customers rely on our systems to capture the data necessary to support complex regulatory requirements and measure quality outcomes. As many LTPAC providers are diversifying, we see home care agencies expanding their service offerings to provide rehab and hospice services and many skilled nursing facilities are acquiring home care agencies. The HealthMEDX platform is uniquely designed to support our customers as they extend their reach. This transaction will support our efforts to rapidly expand our footprint. Pam's experience in delivering innovative solutions to large and small health systems and managing growth in evolving markets will be a great asset to the team."

Jim Quagliaroli, Managing Director of Spectrum Equity, commented, "We are delighted to partner with Trident and Pam in building upon HealthMEDX's leadership in long term and post-acute care. As a highly profitable, rapidly growing software business, HealthMEDX is an excellent fit for Spectrum and our healthcare IT franchise."

Arneek Multani, Senior Managing Director of Trident Capital, added, "We are excited to invest in a company that is addressing the needs of patients and providers in one of the fastest growing areas of healthcare. The long term and post-acute care continuum is an essential and growing component of healthcare delivery; HealthMEDX can support individual facilities or provide complete support for large, diverse, geographically dispersed multi-service providers. HealthMEDX is well positioned to meet the operational needs of our customers. We are excited to partner with Spectrum, Pam, Vince and the team at HealthMEDX."

The transaction provides liquidity to the Company's founders, as well as access to additional capital for investment in new products and future acquisitions. Financial terms of the transaction were not disclosed.

As part of the transaction, Jim Quagliaroli and Steve LeSieur of Spectrum Equity, Arneek Multani and John Reardon of Trident Capital, and Pamela Pure will comprise HealthMEDX's board of directors.

Spectrum and Trident were advised by Choate Hall & Stewart LLP. HealthMEDX was advised by Gallitano & O'Connor LLP.