Health Revenue Assurance Holdings, Inc. Closes Strategic $5.4M Equity Investment
November 13 2013 - 11:21AM
Health Revenue Assurance Holdings Inc. ("HRAA" or "The Company")
(OTCQB: HRAA) today announced that it closed a strategic $5.4
million investment round through Great Point Partners, LLC (GPP)
with Ascendiant Capital acting as financial advisor to fuel the
expansion of its Medical Coding and ICD-10 Transition
Solutions. HRAA is extending its proven services from
individual hospitals and small chains to large integrated health
systems. This round of funding also brings deep relationships
through GPP's portfolio of healthcare companies and as part of
their investment, Great Point Managing Director David Kroin will
join HRAA's Board of Directors. Mitchell Kaye, former Founder
and Chief Executive Officer of MedClaims Liason and current
Managing Director at BVF Partners, will also join the Board of
Directors.
This infusion will enable HRAA to continue to
invest and commercialize its technology platform, as well as expand
its customer-base and capitalize off the looming ICD-10 transition
- the fundamental shift in medical coding which will impact nearly
every healthcare organization in the U.S. and is estimated to
generate tens of millions of dollars in annual training and coding
fees. In the past few months, HRAA has licensed its
curriculum to National American University and Latter Day Saints
Business College paving the way for a highly trained workforce to
meet its ever-growing demand.
"HRAA's front end coding service and back end
auditing function allow hospitals and health systems to leverage
their existing technology infrastructure with a high quality
technology enabled service," said Brett Carlson, Senior Vice
President at Great Point Partners. "After carefully examining
other players in the industry, we concluded that HRAA has a
best-of-breed product with very high client and staff retention and
an excellent curriculum. These are among the many reasons that the
Company has grown in excess of 100% per year and are excited about
welcoming HRAA into our portfolio as our fifth information
technology company."
Healthcare systems are facing some of the
largest changes in a generation- from the Affordable Care Act to
the ICD-10 transitions. These systems rely upon HRAA's Coding,
Consulting and Business Intelligence solutions as they aim to
transition to ICD-10 before the October 2014 deadline. HRAA's vast
industry experience and superior technology allows healthcare
organizations to visualize their medical data and pinpoint areas of
focus for the transition to ensure that their revenue remains
intact.
"HRAA stands at the cusp of being able to
monetize the biggest shift in medical data/infrastructure that is
taking place next year. The proceeds generated from the deal
with Great Point provides us with the financial strength to fulfill
the pipeline of business and see all the years of hard work bear
fruit," said Andrea Clark, founder and CEO of HRAA. "HRAA has a
unique mix of product and services that is allowing us to
effectively sell to players big and small in the healthcare
space. Additionally, we have the most innovative leaders who
have seen each change coming years in advance, and have helped
build a foundation that will carry this company well into the
future."
Commenting on the partnership, Clark continued
"There is no better strategic partner for HRAA at this moment in
time than GPP. Beyond the capital infusion, the intrinsic
value is GPP's extensive network and industry knowledge, which will
help us to further execute on our growth strategy."
About HRAA
Health Revenue Assurance Holdings (OTCQB:
HRAA) interprets data to ensure that healthcare is efficient
and effective for everyone by pulling medical data together to
create a predictive window to understand cost and revenues looking
back and going forward. Founded in 2001 and based out
of Plantation, FL, HRAA combines years of industry expertise
with best-in-breed technology to create market leading business
intelligence products and consulting services to ensure hospitals
are reimbursed for every pill they prescribe, every procedure they
perform and every test they administer. HRAA both trains and
supplies the high tech workforce to hospitals to generate the
predictive data used by the whole healthcare system and offers a
full suite of solutions needed to keep up with the ever-changing
healthcare industry including data analytics software, business
intelligence technology, medical coding, auditing, education,
revenue cycle consulting, and ICD-10 transition solutions. For more
information visit: http://www.hraa.com.
About Great Point Partners
Great Point Partners ("GPP"), founded in 2003
and based in Greenwich, CT, is a leading health care investment
firm with approximately $700 million of equity capital under
management. GPP is currently making new private equity investments
from GPP II, which has closed on approximately $200 million in
commitments. Great Point manages capital in private (GPP I and GPP
II) and public equity (BMVF) funds. Great Point Partners has
provided growth equity, growth recapitalization, and management
buyout financing to more than 100 health care companies. Both the
private and public funds invest across all sectors of the health
care industry including biologics and pharmaceutical
infrastructure, devices and diagnostics, health care services,
hospital outsourcing, information technology, specialty
pharmaceuticals, and workers compensation. The firm pursues a
proactive and proprietary approach to sourcing investments. Reach
Great Point at 203-971-3300. www.gppfunds.com.
Caution Regarding Forward Looking
Statements
Certain statements in this news release and such
conference call are forward-looking, including (without limitation)
expectations or guidance respecting customer contract expansion,
growing revenues and profits through organic growth and
acquisitions, attracting new business that will increase HRAA's
revenues, continuing to maintain costs and consummating any
transactions. Undue reliance should not be placed on such
forward-looking statements because the matters they describe are
subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond the Company's
control. The Company's actual results, performance and trends could
differ materially from those indicated or implied by such
statements as a result of various factors, including (without
limitation) the continued strengthening of HRAA's selling and
marketing functions, continued customer satisfaction and contract
renewal, new product development, continued availability of capable
dedicated personnel, continued cost management, the success and
availability of acquisitions, availability of financing and other
factors, as well as by factors applicable to most companies such as
general economic, competitive and other business and civil
conditions. Information regarding certain of those and other risk
factors and cautionary statements that could affect future results,
performance or trends are discussed in HRAA's most recent annual
report on Form 10-K, quarterly reports on Form 10-Q, and other
filings made with the Securities and Exchange Commission from time
to time. All of the Company's forward-looking statements are
expressly qualified by all such risk factors and other cautionary
statements.
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CONTACT: Investor Relations Contacts:
Phil Carlson / Alex Woodbury
KCSA Strategic Communications
212-896-1233 / 212-896-1267
or
Katerina Jones
954.472.2340
Media Contacts:
Danielle DeVoren / Taylor McGrann
KCSA Strategic Communications
212-896-1272 / 212-896-1253