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Exclusive: Sunstone makes $200M majority investment in Accuhealth

Illustration of a heart rate monitor screen with the line forming a red cross.

Illustration: Brendan Lynch/Axios

Sunstone Partners is investing $200 million into remote patient monitoring platform Accuhealth, Sunstone managing partner Arneek Multani tells Axios exclusively.

Why it matters: Health care's labor shortage is driving demand for RPM solutions that demonstrably improve patient safety and decrease nurse workloads.

Behind the scenes: McAllen, Texas-based Accuhealth is generating between $30 million and 50 million in revenue, sources familiar tell Axios.

  • The all-equity deal was struck after a competitive auction banked by Hyde Park Capital, Multani says. He declined to comment on financials.

How it works: Accuhealth's RPM platform monitors patients with chronic conditions like diabetes and high cholesterol.

  • Its suite includes a blood pressure monitor, a blood glucose monitor, a weight scale, a pulse oximeter, a thermometer, a sleep and resting heart rate monitor, and a peak flow meter.
  • The company has 300 customers, consisting of mid-to-large physician practices and health systems.

What's next: The $200 million will be invested over the next three years as Accuhealth pursues acquisitions.

  • "We don't like to wait on M&A after an investment," Multani says, adding the company is "actively looking today" for add-ons.
  • "We will be doing acquisitions that are [for] specific disease states and we already have potentials in the pipeline," he adds.

State of play: Accuhealth's closest competitors include Commure and Optimize Health, Multani says.

The bottom line: "There are a lot of players in the [RPM] space, which is highly fragmented with no one taking the lead," Multani says.

This story has been corrected to reflect that Accuhealth's closest competitors include Commure (not the company Commure merged with, Athelas).

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