Funds managed by MTS Health Investors LLC, a healthcare private equity firm, have purchased a majority stake in HealthHelp LLC. Terms of the transaction were not disclosed.
HealthHelp said the MTS stake was purchased from an individual investor.
"This transaction is not about putting new capital into the company; we're just replacing a shareholder," said Oliver T. Moses, a senior managing director at MTS. "We are looking to help out the company in many ways. (HealthHelp) is already in a strong financial position, but this will be a good partnership."
HealthHelp, based in Houston, is a radiology benefit management company that provides a comprehensive set of radiology cost-containment services to health insurers, third-party administrators, preferred provider networks and self-insured employers. The company's services cover more than 9 million members in all 50 states, Puerto Rico, the Virgin Islands and Guam.
The senior management team at HealthHelp is expected to remain with the company, MTS executives said.
"HealthHelp presents a unique opportunity for MTS to invest in a proven platform in an industry that has attractive underlying growth dynamics," Moses said. "We look forward to partnering with HealthHelp and are confident that MTS's extensive relationships within the payer community will further enhance the company's new business opportunities."
Cherrill Farnsworth, chief executive officer of HealthHelp, added, "We are pleased to gain the support and backing of MTS's leading healthcare investment franchise. MTS believes strongly in the value we create for health plan sponsors and is committed to helping us grow. We believe that MTS's investment will create new value for our company, our customers and our employees."