Ensemble Health Partners, which provides a healthcare revenue cycle management platform, filed on Wednesday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $500 million.
Ensemble states that it is a leading provider of technology-enabled revenue cycle management (RCM) solutions for health systems, including hospitals and affiliated physician groups. The company manages and optimizes health systems' RCM operations from patient intake through revenue collection by deploying a scalable operating model that leverages a combination of experienced operators, proven processes, and proprietary cloud-based technology. The company derives a majority of net revenue from long-term, end-to-end RCM contracts, which generally have an initial term of 5-10 years with automatic renewals thereafter.
The Cincinnati, OH-based company was founded in 2014 and booked $742 million in revenue for the 12 months ended June 30, 2021. It plans to list on the Nasdaq under the symbol ENSB. Ensemble Health Partners filed confidentially on June 11, 2021. Goldman Sachs, BofA Securities, Deutsche Bank, Guggenheim Securities, Credit Suisse, Evercore ISI, Wells Fargo Securities, SVB Leerink, Baird, and William Blair are the joint bookrunners on the deal. No pricing terms were disclosed.
