Qualifacts Strengthens Market Leadership with Majority Investment from Great Hill Partners
NASHVILLE, Tenn., July 29, 2014 – Qualifacts Systems, Inc., the largest Software-as-a-Service electronic health record (EHR) provider for the behavioral health and human services industries, today announced that it has secured a majority investment from Great Hill Partners, a Boston-based private equity firm with more than $3 billion under management. The recapitalization, which was led by Great Hill Partners and existing Qualifacts management, will allow the company to accelerate product development and expand sales and marketing efforts. The investment and partnership will also help the company identify strategic partnership and acquisition opportunities.
“Qualifacts has emerged as a recognized leader in behavioral health software, but there’s more we want to do to ensure that our customers are successful for the long-term,” said David Klements, President & CEO of Qualifacts. “To help us maximize our full potential, Qualifacts management wanted a financial partner with the right experience and resources. Great Hill was a perfect fit and we’ve already hit the ground running.”
Qualifacts is a leader in cloud-based healthcare technology providing integrated clinical, financial and administrative software solutions to the behavioral health market. In the past five years, the company has grown its customer base by 1,000% and workforce by 650%, repeatedly earning Qualifacts a place among the Inc. 5000 as one of the fastest growing private companies in America. The company’s single platform EHR, CareLogic Enterprise, supports more than 50,000 behavioral health professionals in 30 states and has supported the delivery of more than 20 million services to one million consumers within the past year.
“We are delighted to partner with David and the entire Qualifacts team,” said Mark Taber, a Managing Partner with Great Hill Partners. “Qualifacts offers a unique and powerful platform for behavioral health organizations to drive operational efficiencies, improve access to patient information, and quickly adapt to changing billing and compliance regulations.”
The investment will accelerate existing product initiatives which support the healthcare reform needs of behavioral healthcare providers. These include demonstrating clinical outcomes, coordinating care with other healthcare systems, delivering integrated primary care services alongside behavioral healthcare and efficiently handling new payment models.
Rafael Cofiño, a Principal with Great Hill Partners, added, “We believe Qualifacts has tremendous growth potential as behavioral health providers seek ways to manage increasing patient volume along with highly dynamic state and federal funding requirements.” Great Hill Partner’s prior healthcare technology investments include bswift, Passport Health Communications and SterilMed.
Financial terms of the transaction were not disclosed. Great Hill Partners was advised by Goodwin Procter LLP. Qualifacts was advised by Raymond James Health Care Investment Banking Group and Baker Donelson P.C.
About Qualifacts Systems, Inc.
Qualifacts is the largest cloud-based provider of EHR and billing systems for behavioral health and human services providers. It serves more than 50,000 behavioral health professionals across the country and has one of the most active user communities in the industry. The company’s web-based, certified Complete EHR, CareLogic Enterprise, includes comprehensive, integrated clinical, financial, reporting and administrative information-management capabilities, which improve clinical workflow, revenue-cycle management and operational transparency.
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About Great Hill Partners
Great Hill Partners is a Boston-based private equity firm that manages more than $3 billion in capital to finance the expansion, recapitalization or acquisition of growth companies in a wide range of sectors within the business and consumer services, healthcare, media, communications and software industries. Great Hill targets investments of $25 million to $150 million.