New Mountain combines portfolio companies to launch an AI income cycle business

Diving brief:

• New Mountain Capital combines three of its portfolio companies to create an income cycle management company supported by artificial intelligence called Smarter Technologies, the investment capital company announced on Monday.
• The agreement merges three companies that have received investments from New Mountain this year: Access Healthcare, a income cycle management platform; Smarterdx, which uses AI to analyze the graphics to catch missed billing codes and the call refused complaints; and thought, a company that uses AI agents to manage tasks such as insurance eligibility for insurance, management of previous authorizations and processing complaints.
• Jeremy Delinsky, former Director of Technology of the Computer Company of Health Athenahealth and executive advisor to New Mountain, will serve as CEOs of the Combined Company.

Diving insight:

Smarter Technologies will serve more than 200 customers, including more than 60 hospitals and health systems, according to a press release. The combined company is expected to generate more than $ 800 million in income.

The individual leaders of each of the three companies will continue to supervise their commercial units, said New Mountain.

The agreement aims to offer a “complete” platform to make the administrative work of health systems to manage more effective income and invoicing, said the investment capital company. AI has become an attractive technology in the health care sector, triggering the hope that it could alleviate some of the administrative and back office tasks.

“We recognize that organizations of health care providers are faced with growing administrative and operational challenges, and they need a new type of flexible income management platform that brings together the most proven AI technologies with the lowest cost to serve the highest quality global operations platform,” said Delinsky in a press release.

The latest Rollup of New Mountain comes from months after the investment capital company has merged some of its other health care investments in a new payment clarification company.

In September, the investment capital company said that it combined the Rawlings group, an analysis company which finds third parties responsible for the payment of medical complaints, the payment integrity platform of the APIXIO health technology provider and the TRAY-Varis identification company.

Then, at the beginning of this year, New Mountain acquired the health care payment company supported by AI Machinify to add to the combined company, which faced the Machinify brand.

Health care technology has also recently become an increased objective for investors in investment. The value of investment capital and venture capital agreements in health technology increased by around 50% from one year to the next in 2024, according to a report published last month by S&P Global Market Intelligence.