TA Associates Completes Minority Investment in
November 10, 2010 08:03 AM Eastern Time
BOSTON--(EON: Enhanced Online News)--TA Associates, a leading growth private equity firm, today announced
it has completed a minority investment in MedSolutions, a leading provider of medical management services. Current
investors MedCare and Ridgemont Equity Partners will each retain a portion of their stake in MedSolutions.
Additional terms of the investment were not disclosed.
Founded in 1997, MedSolutions specializes in the cost management of medical services for commercial, Medicare
and Medicaid payors. Under a unifying theme of delivering measurable cost savings that are a consequence of
improving healthcare quality, the company has expanded its utilization management platform from its original focus on
high tech radiology to now review compliance with evidence-based guidelines for a broadening array of medical
services, including cardiology, oncology, ultrasound and sleep study management. MedSolutions also offers the
PremerusSM Diagnostic Accuracy program for reducing diagnostic error rates to improve the quality and cost of
MedSolutions has over 500 employees and is headquartered in Nashville, Tennessee, with call centers in Nashville
and Melbourne, Florida. The company provides cost management for more than 27 million individuals.
“With the ever-growing cost of healthcare, cost management is increasingly coming into focus,” said Mark H. Carter,
a Principal at TA Associates who will join MedSolutions’ Board of Directors. “TA has always been attracted to
healthcare businesses that effectively address cost issues, and MedSolutions does so by reducing inappropriate and
duplicative tests, improving patient safety and enhancing quality of care. We are pleased to complete this investment
“We have been acquainted with TA almost since our founding and are delighted to partner with the firm,” said Curt
Thorne, President and CEO, MedSolutions. “Beyond financial support, TA brings a wealth of experience in the
healthcare sector in general and the utilization management industry in particular. We anticipate a beneficial
relationship as we continue our mission to provide innovative solutions that achieve significant costs savings and
quality improvement for patients, payors and providers. We are also pleased that MedCare and Ridgemont Equity
Partners will remain significant shareholders as their support and contributions have been an important part of the
Spending on healthcare in the United States is expected to soon exceed 20% of GDP. Current U.S. spending on
imaging and utilization is estimated at $100 billion annually and is widely recognized as one of the fastest growing
elements of overall healthcare spending, as reported in a 2008 study by the U.S. Government Accountability Office.
Beyond costs, there are serious patient safety issues related to unnecessary medical imaging. Certain studies expose
patients to radiation dosages equal to 1,000 chest x-rays, and the National Cancer Institute estimates that excessive
use of CT imaging will induce cancer in 30,000 Americans a year.
“With annual growth in imaging costs exceeding even that of prescription drugs, the radiology benefit management
industry is assuming an active role in addressing the urgent issue of rising costs,” said David S. B. Lang, an Advisor
at TA Associates who will also join MedSolutions’ Board of Directors. “Ninety percent of commercial health plans
utilize such programs to manage the growing cost of imaging, and a 2008 report from the Government Accountability
Office recommended adoption by Medicare. Today, MedSolutions has a significant presence within private and
government-run health plans, with opportunities for continued growth. With 32 million more people moving into
coverage under commercial health plans and Medicaid by 2019, the valuable services MedSolutions provides will be
under more demand than ever.”
TA Associates has more than four decades of investing experience, focusing on profitable growth companies. TA’s
prior investments in the healthcare sector include Alere Medical, Amann Girrbach, AmeriChoice, CompBenefits, Dr
Lal PathLabs, Invitrogen, Millennium Laboratories, MQ Associates, National Imaging Associates, Triumph
HealthCare and Twin Med.
Goodwin Procter provided legal counsel to TA Associates. Goldman Sachs served as financial advisor, and Bass
Barry provided legal counsel to MedSolutions.
Using independently validated savings methodologies, MedSolutions specializes in quality-driven, intelligent cost
management of medical services for commercial, Medicare and Medicaid payors. The company maintains
management contracts for more than 27 million individuals nationwide. Using robust data, predictive intelligence
technology and evidence-based clinical expertise, the company's innovative solutions extend beyond Radiology
Management to other areas of medical specialty, including Oncology, Cardiac Imaging, Sleep, Ultrasound, and
MedSolutions’ groundbreaking PremerusSM Diagnostic Accuracy program – the nation’s first solution for reducing
diagnostic error rates to improve the quality and cost of care. MedSolutions has been recognized for outstanding
customer service and effective call center management by the International Customer Management Institute and for
three consecutive years by the prestigious J.D. Power and Associates Award. Visit www.medsolutions.com.
About TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced middle market private equity firms. The
firm has invested in over 400 companies and manages more than $16 billion in capital. With offices in Boston,
London, Menlo Park and Mumbai, TA Associates leads buyouts and minority recapitalizations of profitable growth
companies in the technology, financial services, business services, healthcare and consumer industries. More
information about TA Associates can be found at www.ta.com.
Marcia O’Carroll, 617-574-6796
Philip Nunes, 617-556-9982, x227