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CorroHealth in North Texas Raises Strategic Investment from Patient Square Capital » Dallas Innovation

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CorroHealth in North Texas Raises Strategic Investment from Patient Square Capital » Dallas Innovation

CorroHealth in North Texas Raises Strategic Investment from Patient Square Capital » Dallas Innovation

Image: Anything Is Possible/iStock

CorroHealth, a Plano-based provider of revenue cycle management solutions for health systems and health plans, has received a strategic investment from Patient Square Capital, a boutique healthcare investment firm based in Menlo Park, California.

Pat Leonard

“Since its inception in 2019, CorroHealth has grown into a technology-driven and clinically driven RCM platform for healthcare,” CorroHealth CEO Pat Leonard said in a statement. “The Patient Square team has a long history of successfully investing in and scaling healthcare companies. We are delighted to welcome them and look forward to leveraging the expertise of our investors to further expand our capabilities and deliver exceptional value to our clients.”

The amount of investment in Patient Square was not disclosed.

CorroHealth said current shareholders, including investment funds affiliated with global investment firm Carlyle, TT Capital Partners, Sanaka Group and CorroHealth management, will remain investors.

Patient Square and Carlyle jointly control CorroHealth.

“We are excited to partner with CorroHealth’s management team and investors to build on CorroHealth’s successful track record of organic and inorganic growth,” Patient Square partner Justin Sabet-Peyman said in a statement. “We are confident in the attractiveness of the RCM market and believe CorroHealth is well positioned to continue to provide differentiated technology solutions to its providers and payer customers.”

Carlisle has been a major investor in CorroHealth since 2019 and a predecessor investor since 2017.

“We are extremely proud of CorroHealth’s growth since its inception. We believe the future is bright for CorroHealth and are committed to supporting CorroHealth’s continued growth and innovation with our new and existing partners,” Carlyle partner and global co-head of healthcare Joe Bress said in a statement.

The deal is expected to be completed by the end of the year, CorroHealth said.

CorroHealth was formed through the merger of four companies—Visionary RCM, T-System, RevCycle+ and TrustHCS—to create a comprehensive provider of healthcare analytics, RCM and technology services to hospitals and health systems around the world. Just last month CorroHealth expanded by acquiring Xtend’s healthcare revenue cycle management business from Navient.

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