New Delhi, May 4 -- Private equity firm Carlyle said Monday it is building a revenue cycle management (RCM) platform by acquiring majority stakes in two US-based companies.
Carlyle has taken controlling stakes in Knack RCM and EqualizeRCM to create an AI-native multi-specialty RCM platform.
Both companies provide healthcare RCM services to physician groups, durable medical equipment (DME) providers, rural hospitals, and other specialty provider segments. Their offerings span DME, anaesthesia, eyecare, behavioural health, rural hospitals, urgent care, and multi-specialty physician groups. New Jersey-based Knack RCM employs over 8,000 people across 10 delivery centres in India, the Philippines and the US.
Carlyle said the combined platform will improve scale and diversification. Knack will contribute scaled global delivery across the US, India, and the Philippines, along with its orchestration platform Workmate. EqualizeRCM will add delivery scale in the US and India, as well as technology such as its Bill Smart platform for denial prediction and avoidance.
Knack founder Rajiv Sharma and EqualizeRCM founder Nagi Rao will remain invested in the platform, reinvesting a portion of their proceeds from the deal.
Carlyle said it will further expand the platform through additional deals in the RCM space, adding "synergistic assets with complementary offerings."
The investment will be funded through Carlyle Asia Partners VI and Carlyle Asia Partners Growth II. Financial terms were not disclosed.
"One of the core tenets of this investment is to build a scaled, strategically attractive physician and rural hospital RCM platform in a fragmented industry," said Amit Jain, partner and head of Carlyle India Advisors.
"This investment extends our 'India for the World' thesis and builds on our experience investing in technology and tech-enabled services," he added.
Published by HT Digital Content Services with permission from VC Circle.