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Exclusive: Audax-backed consulting firm Chartis acquires HealthScape Advisors

Illustration of a person wearing scrubs using a blood pressure cuff made of money.

Illustration: Gabriella Turrisi/Axios

Audax-backed Chartis, a health care consulting firm, acquired HealthScape Advisors, a payer-focused consulting firm, CEO Ken Graboys tells Axios exclusively.

Why it matters: U.S. health care spending growth is beginning to settle back into pre-pandemic patterns, and demand for consulting services is growing as providers and payers look to manage costs.

Details: The combined company will generate north of $400 million in 2024 revenue, sources close to the deal told Axios. Graboys and Audax declined to comment on financials.

  • The deal was sourced through a yearslong relationship, says Graboys.

Catch up quick: Audax has held Chicago-based Chartis since 2019, after acquiring it from RLH Equity Partners for an undisclosed price. PitchBook valued that deal at $390 million.

  • Chartis has completed a few acquisitions since, acquiring consulting firms Crankfrog, Just Health Collective, DES Health Consulting and Chi-Matic over 2022–2023.

How it works: Chartis advises roughly 900 health care organizations annually, including national, regional and local providers and payers, health tech companies, health services organizations and health care investors.

  • Chicago-based HealthScape serves roughly 300 clients across various insurance segments, including commercial, Medicare, Medicaid, ACA and federal with its 160 employees.

What's next: The company will continue to acquire opportunistically, Graboys says.

The big picture: Last month, Humana reported its Medicare Advantage costs jumped after "higher than anticipated inpatient utilization," as insurers grapple with patients catching up on elective procedures.

  • "We are currently experiencing increased demand in areas ranging from Medicare Advantage and Managed Medicaid to value-based care, and total cost of care reduction," says Graboys.
  • He added that the company is also seeing more demand in specialty benefits organizations.
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