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Scoop: Veritas buys RCM firm Coronis Health

Jul 15, 2022
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Illustration: Annelise Capossela/Axios

Veritas Capital has acquired revenue cycle management firm Coronis Health, sources familiar with the matter tell Axios.

Why it matters: Veritas has a successful track record scaling technology companies, including selling EHR giant AthenaHealth for $17 billion last year, three years after buying it for $5.7 billion.

  • If history is any indication, the New York buyout firm likely has a larger longer-term vision for Coronis, and that very well may include additional transformative M&A.

Catch up quick: A sponsor-centric process for the Baltimore, Maryland-based company kicked off earlier this year, with Guggenheim Securities mandated for financial advice, Axios reported.

  • Coronis marketed approximately $50 million in adjusted EBITDA, sources said then.
  • Valuation has yet to be learned, besides sources commenting that Coronis commanded a double-digit EBITDA multiple. (If you’ve heard, write to us.)

Context: Coronis is a tech-enabled physician billing and RCM company offering specialized solutions to practices and facilities across pathology, behavioral health, hospital and surgery centers, primary care and specialty physicians, anesthesia and emergency medicine.

  • The company operates in both the U.S. and India. In the latter country, Coronis employs locals, rather than contract employees, in its captive-site offshore model — which is unique among RCM players that offshore.
  • Led by CEO Stephen Grubbs, Coronis has 2,000-plus team members and processed more than 31.2 million claims in 2021.

What we're hearing: Veritas may be considering combining Coronis with another privately held health care RCM player, one source says.

💭 Our thought bubble: There are several RCM players that the freshly capitalized platform could go after — and we suspect it could be gearing up to put together a handful, ultimately. Others in the space include:

  • Varsity Capital Partners’ Ventra Health, GBP Capital's Health Prime, Omega Healthcare, ChrysCapital's Gebbs Healthcare Solutions, Baring Private Equity Asia's AGS Health and Access Healthcare Services.
  • Of note: The latter (AHS) appears to have been the back-end offshore provider for former Veritas portfolio company AthenaHealth.

Veritas declined to comment, while the company did not return a request for comment.

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