Bain buys majority stake in hospital streamlining company LeanTaaS
Bain Capital has acquired a majority stake in hospital software provider LeanTaaS from insiders Insight Partners and Goldman Sachs.
Why it matters: LeanTaaS works with hundreds of U.S. hospitals and health systems at a time when the industry has struggled to meet demand and expand capacity while combating a pandemic. Bain Capital's stake is aimed at allowing LeanTaaS to do both.
Of note: "Coming out of COVID, hospitals are thinking about patient access and efficiency and how to better utilize employees' time," Bain Capital managing director Devin O'Reilly tells Erin. "These are all scarce resources."
- "We think of [LeanTaaS] as an AI-driven approach to optimizing assets and improving patient care," O'Reilly added.
Details: The deal includes an undisclosed growth capital commitment from Bain Capital Private Equity. Insight Partners and Goldman Sachs will keep a stake in the company.
- Mohan Giridharadas will continue as CEO.
- William Blair advised LeanTaaS and Evercore advised Bain.
How it works: LeanTaaS offers hospitals predictive tools to monitor the use of operating rooms, hospital beds and infusion chairs. The goal: curb patient delays, maximize revenue and deliver better care.
- Example: scheduling surgeries. This tends to be a manual process, often involving phone calls. It's a process that leaves operating rooms unused for large chunks of time.
- LeanTaaS' uses machine learning to find and highlight those open slots and fill them, boosting efficiency, Giridharadas says.
State of play: LeanTaaS currently works with 500 U.S. hospitals and 130 health systems including Stanford, New York-Presbyterian, Memorial Sloan Kettering, Penn Medicine, UCHealth, MD Anderson Cancer Center.
By the numbers: Founded in 2010, the company boasts a 117% net retention rate and a growth rate of 40% year-over-year for the last two years.
What's next: Giridharadas sees LeanTaaS as a kind of future air traffic control center for hospitals, a plan that may involve future acquisitions.
- The full cycle of getting surgery — from visiting a doctor to scheduling the operation and recovering — "... has 15 steps, and right now, we’re only touching two of them," says Giridharadas.