Private Equity Firm Invests in ACO Company's Data Analytics Merger

Great Point Partners, a private equity firm based in Greenwich, Conn., has helped bankroll the merger of Orange Health Solutions and MZI HealthCare.

Financial terms of the deal were not disclosed. Under the deal, Orange Health will acquire MZI and combine the two companies.

Orange Health, founded by former UnitedHealth Group executives, provides services to hospitals and healthcare organizations to establish accountable care organizations and value-based care models. MZI similarly helps hospitals, providers, health plans, ACOs and other healthcare entities with data analytics, predictive modeling, medical care management and health benefit management technologies.

GPP said the deal was a smart investment as the healthcare world transitions to value-based care. "Building out the necessary technology and human capital-based infrastructure to succeed in ACOs or other value-based reimbursement models is not cost-effective for the vast majority of the market," Brett Carlson, senior vice president at GPP, said in a news release. "Orange Health, in combination with MZI, provides an integrated, one-stop solution that allows providers to solve their technology and service needs."

GPP has invested in several other healthcare companies, including IT firms like iVantage Health Analytics and hospital outsourcing businesses like American Surgical Professionals.

More Articles on ACOs:
The Top Areas in Healthcare for Private Equity Investment in 2014
5 Observations on ACOs
100 Accountable Care Organizations to Know

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