Investment firm New Mountain Capital LLC investment firm has arranged a merger of three companies to create a healthcare payment accuracy platform.
The merger involves the Rawlings Group, Apixio’s Payment Integrity business, and VARIS. The companies did not disclose financial details.
New Mountain said the new company, as yet unnamed, would have an expansive set of capabilities, including subrogation, coordination of benefits, pharmacy payment integrity, and complex claim solutions, to ensure payment integrity and will work with many of the largest health plans in the United States.
“This combination of payment integrity leaders will create value across the entire healthcare ecosystem,” said Matt Holt, managing director and president, private equity at New Mountain, in a statement. “The new organization will help reduce administrative waste while being a catalyst for lowering healthcare costs for payers, payviders, employers and consumers. This move is built upon our decades of healthcare expertise coupled with an accelerated investment in leveraging big data and AI with a maniacal focus to help bend the cost curve.”
David Pierre will become CEO of the combined entity. Pierre previously served as chief operating officer of Signify Health, where he led over $1 billion in revenue and oversaw the company’s initial public offering in 2021 and subsequent $8 billion sale to CVS Health in 2023.
“We are excited for the growth and innovation that this merger will enable, and the world-class talent ready to unlock value in new ways across the enterprise,” said Pierre.
“We share a customer-first approach and are bringing together what we believe are the industry's best individual capabilities into one, data-rich platform, with the power of analytics to intervene earlier in the claims cycle to drive maximum ROI for our clients,” Pierre said in a statement.
As part of the transaction, Apixio’s Connected Care platform and value-based care solutions were acquired by Datavant.
