Management Health Solutions Inc., a Fairfield, Conn.-based provider of supply chain management solutions to hospitals, has raised $7 million in Series B funding. Enhanced Equity Fund led the round, and was joined by return backer Radius Ventures.
Management Health Solutions, Inc. (MHS), a leading provider of supply chain management solutions to hospitals and healthcare providers across the United States, announced today the completion of a $7.0 million Series B equity investment led by Enhanced Equity Fund, L.P. (Enhanced Equity). Radius Ventures, LLC (Radius), the company’s existing institutional investor, also participated in the financing round.
The Series B investment was used to fund the company’s recent acquisition of AtPar, Inc., a provider of mobile technology solutions that increase efficiencies in managing clinical supply inventories primarily within the hospital setting. The investment will also fund continued growth and expansion of the company’s suite of hospital supply chain management offerings.
“We are eager to begin our relationship with Enhanced Equity because their expertise in the healthcare services and healthcare information technology sectors, coupled with their vast network of industry relationships, will make them a valuable partner as MHS grows,” said William Zierolf, president and CEO of Management Health Solutions, Inc.
“Enhanced Equity’s current and ongoing commitment to MHS strengthens our financial foundation and is critical to our ability to continue to deliver innovative supply chain management solutions that assist our hospital clients in controlling the rising cost of healthcare while improving patient safety.”
Enhanced Equity is a lower-middle market private equity fund focused on growth capital investing within certain sectors of the healthcare industry. It is currently investing out of its second fund and manages funds in excess of $500 million.
“We are keenly interested in investing in healthcare enterprises that reduce system costs in delivering healthcare nationwide,” said Brett Fliegler, partner at Enhanced Equity.
“MHS’s solutions are squarely centered on increasing efficiencies within the hospital setting which, in turn, lower costs and improve capital utilization for the hospital. We see great potential for MHS to play a key role in shaping the future of clinical supply chain management in the healthcare industry, particularly with MHS’s recent acquisition of AtPar which further transforms MHS’s capabilities to develop and advance its OPTIC solution.”
The addition of AtPar’s mobile technology complements MHS’s Optimal Inventory Control (OPTICSM) model – the company’s proprietary process of clinical inventory optimization – by adding handheld inventory tracking technology to its suite of supply chain management solutions.
Enhanced Equity joins MHS’s existing institutional investor, Radius Ventures, a venture capital firm focused on leading-edge health and life sciences companies.
“MHS’s partnership with Enhanced Equity brings MHS a terrific capital partner with dedicated healthcare industry expertise,” said Daniel Lubin, managing partner of Radius and member of MHS’s board of directors.
“Having worked with MHS for two years, we have never been more excited about the importance of the company’s value proposition to our hospital partners. MHS is well-positioned to enhance its existing offering and develop key new products and services, all fueled by the ongoing commitment by Enhanced Equity and Radius.”
For additional information on MHS and their products and services, please visit www.mhsinc.com.
ABOUT MANAGEMENT HEALTH SOLUTIONS, INC.
Management Health Solutions, Inc. (MHS) is the leading provider of an integrated inventory management solution designed to dramatically reduce clinical supply inventory cost and streamline clinical supply chain operations, which enhances patient safety and improves financial performance. MHS combines ‘best-in-class’ professional services with content solutions, benchmarks, leading edge technology and mobile device management – enabling hospitals to generate a measurable return on investment. MHS serves individual hospitals and integrated delivery networks in North America. To learn more about MHS and its OPTICSM services, visit www.mhsinc.com.
ABOUT ENHANCED EQUITY FUND, L.P.
Enhanced Equity Fund, L.P. (Enhanced Equity), with over $500 million of assets under management, is focused on providing equity capital to lower-middle market growth companies (typically less than $100 million in revenues) in the healthcare industry. As part of their investment philosophy, Enhanced Equity partners with successful entrepreneurs and management teams to build value through both internal growth strategies and acquisitions in order to transform their businesses into market leaders. To learn more about Enhanced Equity, visit www.enhancedequity.com.
ABOUT RADIUS VENTURES, LLC.
Radius Ventures, LLC (Radius) is a venture capital firm focused on leading-edge health and life sciences companies. Investments are sought across the industry’s key sectors including biotechnology and pharmaceuticals, medical devices, services, and healthcare/life sciences information technology. Radius currently manages three funds with total committed capital of approximately $200 million. Generally, Radius invests up to $8 million in aggregate, as a lead or syndicate investor. For more information, visit www.radiusventures.com.