HealthEdge Completes Sale of Corridor to WellSky
Tampa, FL – October 12, 2023 – HealthEdge Investment Partners (“HealthEdge”), a Tampa, Florida-based private equity fund focused exclusively on lower middle market healthcare investing, announced today that it has exited its Fund II portfolio company, The Corridor Group Holdings, LLC (“Corridor”), to WellSky, a leading health and community care technology company backed by Leonard Green and TPG.
During HealthEdge’s ownership, Corridor transitioned from a well-respected consulting and education firm into a disruptive market leader delivering tech-enabled revenue cycle and medical coding solutions that help clients ensure accurate reimbursement and operate more effectively in a complex regulatory environment. Today, Corridor serves over 2,600 client sites and 52,000 clinicians across home health, hospice, and skilled nursing with its medical coding, clinical documentation review, and billing and collections services.
To drive this transformation, Corridor assembled a best-in-class leadership team led by Chief Executive Officer and HealthEdge Operating Partner Des Varady. Working with HealthEdge, this team completed significant investments in Corridor’s technology and service delivery capabilities, including a targeted shift in operating strategy through the completion of five strategic add-on acquisitions, and the development of foundational technology platforms for AI-enabled computer assisted coding and revenue cycle acceleration. Corridor is known for delivering solutions with unmatched quality, helping its clients solve the post-acute care industry’s toughest challenges.
HealthEdge Managing Partner Phil Dingle said of HealthEdge’s investment in Corridor, “We partner with businesses that go to market with a strong value proposition for their customers. Our goal with Corridor was to build upon the company’s strong foundation to enhance and strengthen its ability to provide comprehensive, industry-leading solutions. We are highly pleased with this outcome for our investment in Corridor and are excited to see how WellSky executes on its vision to expand its ability to help care providers increase efficiency and improve performance.”
“For more than 30 years, Corridor has delivered on our mission of helping our post-acute healthcare clients maximize their performance. I’m thrilled that Corridor will continue to advance that mission as part of the WellSky team. With WellSky’s similar post-acute healthcare focus on improving outcomes, lowering costs, and improving patient satisfaction, we can together better serve our provider clients,” said Mr. Varady. He added, “It has been a pleasure working with the HealthEdge team, their guidance and support have been instrumental to Corridor’s growth and success."
This exit highlights HealthEdge’s strategy of partnering with founders and management teams to build market-leading healthcare companies and deliver strong returns for its investors. HealthEdge realized a 9.0x return on its investment in Corridor.
Lincoln International acted as the exclusive financial advisor to Corridor and HealthEdge on this transaction.
ABOUT CORRIDOR
Founded in 1989, Corridor is a leading provider of technology-enabled outsourced coding, revenue cycle and education solutions to the post-acute healthcare industry. Leveraging deep and broad post-acute expertise, Corridor delivers documentation quality improvement and reimbursement success to clients ranging from large health systems and national chains to smaller, independently operated agencies. For more information visit www.corridorgroup.com.
ABOUT HEALTHEDGE INVESTMENT PARTNERS
HealthEdge Investment Partners is an operating-oriented private equity firm founded in 2005 that focuses exclusively on the healthcare industry. HealthEdge seeks to achieve superior returns by investing in businesses that benefit from the knowledge, experience, and network of relationships of its partners. HealthEdge’s partners have more than 100 years of combined experience in healthcare as operators and investors. For more information visit www.healthedgepartners.com.