Performant Capital formed Provider Technology through the acquisitions of DavLong Business Solutions and its affiliate Administrative Advantage (collectively, DBS) and On Demand Solutions (ODS). Provider Technology is a technology provider of outsourced software and IT services, revenue cycle management (RCM) and back-office business support primarily to physician practices and health systems. The businesses will continue to operate independently under their respective brands but share best practices across all functional areas.
Performant, investing out of Fund I, closed the DBS and ODS transactions simultaneously in June. The private credit business within Goldman Sachs Asset Management provided first lien debt and an equity co-investment to support the acquisitions.
“The team at Goldman Sachs has been invaluable as we executed this platform investment,” Mike Ciaglia, partner at Performant, said. “We look forward to meaningfully accelerating the growth of the business given the scale enabled by Goldman’s partnership.”
Founded in 1983 and headquartered in Savannah, GA, DBS provides turnkey IT solutions for physician practices by fully hosting, maintaining and supporting all software needs for the medical office, from cloud hosting to cybersecurity. DBS combines its proprietary suite of software offerings with third-party solutions to provide medical practices with a fully integrated electronic health record and practice management system from a single vendor. In addition to its software offering, DBS also provides complete RCM services designed to manage and optimize the entire collections process for practices. Across both primary functional areas, the company leverages technology, analytics and the expertise of its skilled teams to improve operational and financial performance for customers.
Founded in 2007 and headquartered in Boise, ID, ODS provides practice management software, RCM, staffing support and business advisory services to healthcare service providers and organizations. Its solutions improve business operational efficiency, reduce administrative costs and assure managerial control so clients can stay focused on providing quality patient care.
The combination of DBS, AA and ODS creates a national back-office and healthcare technology platform servicing more than 3,000 medical providers across the U.S and across medical specialties – developing best-in-class offerings and technology for specific specialties, such as ophthalmology, EMS and hospitalist providers.
“These businesses are highly complementary acquisitions that together provide enhanced technology capabilities and support services with broader geographic presence to better meet the needs of clients and improve their financial outcomes,” Chris McLaughlin, partner at Performant Capital, said. “Both businesses have a reputation of providing superior customer support as value-added partners to physicians and health organizations. Customers value our company as more than just a service provider, but extensions of their core teams. With an expanded presence and enhanced capabilities to drive further value for clients, we’re excited about the future of the combined business under Provider Technology.”
