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EHP pours $45M into Janus Health

Illustration of a saline bag solution with money as the liquid in the bag.

Illustration: Aïda Amer/Axios

Enhanced Healthcare Partners has invested $45 million into revenue cycle management (RCM) tech company Janus Health, Axios has learned.

Why it matters: RCM remains low-hanging fruit to help health systems become more efficient and thus more profitable — presenting a compelling value proposition for PE.

Details: Fresh funds will finance market expansion and product development, with a focus on organic growth, says EHP partner Won Park, who declined to comment on deal terms.

  • EHP invests in companies generating around $8 million in recurring revenue, Park says.
  • "We believe we can grow it to a company making $100- to $200 million in revenue," he adds.
  • Janus is not yet profitable, sources say, and is valued at $206 million, per PitchBook. EHP declined to comment on financials.

Catch up quick: Founded in 2020, Janus has raised about $10 million from investors including Caduceus Capital Partners and Ensemble Health Partners.

  • The deal with EHP was sourced proprietarily after more than a year of relationship building, Park tells Axios.
  • EHP looked at more than 50 RCM assets before landing on Janus.
  • "It is a company that is transformative, disruptive in revenue cycle management space and is efficient with its capital," Park says.

What's next: "The plan is to hold it for around five years, but you never know," Park says.

  • "Strategics have been circling this asset."

Between the lines: "Janus has been very capital efficient, and despite it growing like a weed it has been operating with a bootstrap mentality," Park says.

  • Profitability — or a clear path to it — is taking precedence over other growth metrics when it comes to health tech investing.

Editor's note: This story has been corrected to note the company name is Janus Health, not Janus Healthcare.

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