ClarisHealth, the industry's only provider of enterprise payment integrity technology for health plans, partners with experienced private equity firm Pamlico Capital for minority growth round investment. Investment will expand the scale of operations, product innovation, and further the company's mission to create a better way to drive claims payment accuracy.
BRENTWOOD, Tenn. and CHARLOTTE, N.C., Jan. 9, 2024 /PRNewswire-PRWeb/ -- ClarisHealth, provider of the industry's leading enterprise payment integrity technology for health plans, announced today that it secured a strategic growth investment from Pamlico Capital ("Pamlico"), a private equity firm based in Charlotte, N.C.
ClarisHealth's mission is to create a better way to drive claims payment accuracy. This mission is realized through its integrated technology platform, Pareo®, used today by more than 20 health plans representing over 73 million health plan members. With this growth capital, ClarisHealth will expand the scale of its operations and product innovation and accelerate its market position on the back of its best year for new client growth.
"With the industry's only integrated technology platform for payment integrity, we are empowering health plans to take control of their payment accuracy operations and strategies," says Jeff McNeese, CEO of ClarisHealth. "This investment will be a catalyst to accelerate our growth and expansion as we continue to work with payers to push the industry forward. We are excited Pamlico recognizes the value of our enterprise technology, and we look forward to leveraging their industry expertise as we take ClarisHealth to the next level."
Pamlico Partner Scott Glass added, "We are excited to welcome ClarisHealth into the Pamlico family. ClarisHealth offers a unique product with a compelling value proposition to its health plan clients. They are a first mover and have established a leadership position in this segment of the market. We are thrilled to partner with the management team to continue to innovate the product platform and further expand ClarisHealth's market position."
This investment will build on previous successes of the company and should lead to significant growth, according to McNeese.
"ClarisHealth has achieved significant market adoption of our enterprise platform across more than 20 leading health plans that represent almost one fourth of insured Americans," said McNeese. "This position fortified our desire to bring another growth partner to the table that has the right experience and shares our vision to transform the payment integrity industry."
This funding round is the latest milestone in ClarisHealth's hypergrowth cycle:
- In 2023, it ranked on the Inc. 5000 for the fourth year in a row.
- In 2022, it ranked on the Deloitte Technology Fast 500 for the second year running.
- Its enterprise technology platform Pareo has been included in the Gartner Hype Cycle for U.S. Payers report on prospective payment integrity for three consecutive years.
ClarisHealth is a portfolio company of Nashville-based Powered Health and Bengal Health Ventures. ClarisHealth was advised by William Blair as its financial advisor and Hughey Business Law as its legal advisor. Powered Health and Bengal Health Ventures were advised by OM Partners. Pamlico Capital was advised by Raymond James & Associates as its financial advisor and Alston & Bird LLP as its legal advisor. Terms of the transaction were not disclosed.
ClarisHealth, a four-time Inc. 5000 and two-time Deloitte Technology Fast 500 company and recognized for prospective payment integrity solutions in the Gartner Hype Cycle, provides health plans and payers with a better way to drive claims payment accuracy. Its proprietary, A.I.-powered enterprise technology platform Pareo® enables health plans to maximize cost avoidance and recoveries at the most optimized cost for an industry-leading ROI. Learn more at www.clarishealth.com.
About Pamlico Capital
Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in North America. Pamlico Capital seeks control-oriented growth equity investments of up to $200 million alongside founders and proven leaders in its target industries: communications, healthcare, services and software. The firm, based in Charlotte, NC, has assets under management of almost $3.5 billion. For additional information, please visit www.pamlicocapital.com.