SpendMend, a provider of solutions to optimize the cost-cycle for the healthcare industry, announced they have closed on a round of strategic investments from Spectrum Health Ventures as well as Memorial Hermann Health System.
The new venture activity “follows closely in the wake of the strategic investment into SpendMend by investment funds managed by Morgan Stanley Capital Partners, the middle-market-focused private equity team at Morgan Stanley Investment Management”
Dan Geelhoed, SpendMend Founder and CEO, said:
“Nearly five years ago we pivoted. We deliberately positioned away from being known only as the leading provider of profit recovery services in healthcare. We worked tirelessly to expand our solution suite, and we situated ourselves as the industry’s foremost innovator for cost-cycle management. In that time, we have expanded our service offerings through internal product development and strategic M&A, leading to a significant increase in revenue in both organic and accretive growth.”
Scott McLean, Managing Director at Spectrum Health Ventures, remarked:
“Controlling costs is arguably the biggest challenge facing health systems across the country today. Simply put, SpendMend’s suite of cost-cycle solutions helps hospitals reduce costs and optimize future savings. SpendMend is a perfect fit for the Spectrum portfolio, and they are fast becoming an indispensable partner for U.S. Health Systems.”
Feby Abraham, Executive Vice President and Chief Strategy Officer for Memorial Hermann Health System, added:
“Our organization’s mission to improve health goes beyond direct patient care as we focus on value and tactics that can help drive down the cost of care. Our approach includes aligning ourselves with organizations that share our vision for healthier communities in unique cost-effective ways. This investment is one of several we have implemented that demonstrate a track record of meaningful solutions to bend the cost curve and support our ability to invest in healthier communities.”
As noted in the update shared with CI, SpendMend claims to be “a leading provider of tech-enabled, cost-savings solutions in the healthcare industry.”
Combining the use of data, proprietary technology, and rigorous analytics with its healthcare focus and expertise, SpendMend partners with healthcare networks “to expose the dark data to improve and optimize their costs in meaningful and collaborative ways.”
SpendMend’s mission is “to help its clients improve their patient care through innovative cost-savings solutions.”