GTCR and Cedar Gate Technologies Announce Acquisition of Citra Health Solutions
CHICAGO, June 29, 2020 /PRNewswire/ -- GTCR, a leading private equity firm, announced today that its Cedar Gate Technologies ("Cedar Gate") management partnership with CEO David Snow has acquired Citra Health Solutions ("Citra"). Citra sells a specialty workflow software solution that is used in the administration of capitated reimbursement, a form of value-based healthcare.
The add-on acquisition of Citra expands Cedar Gate's technology platform across the full spectrum of value-based care and is another example of the GTCR Leaders Strategy™ at work. GTCR partnered with Mr. Snow to form Cedar Gate and pursue the strategy of building a market-leading healthcare technology company that helped the healthcare industry shift to value-based reimbursement from traditional fee-for-service. Mr. Snow is a 30+ year healthcare industry veteran, having previously served as Chairman and CEO of Medco, one of the nation's largest pharmacy benefit managers. During Mr. Snow's tenure, Medco's revenue grew from $34 billion to over $70 billion before its eventual sale to Express Scripts in 2012.
Under Mr. Snow's leadership, Cedar Gate has pursued a dual strategy of M&A as well as internal software development to provide healthcare providers and payors with the software tools to operate in the shifting healthcare payment landscape. In 2016, Cedar Gate developed a proprietary SaaS analytics suite, ISAACTM, that enables healthcare providers, payors and self-insured employers to evaluate the cost and quality of care within their healthcare delivery network. To complement ISAAC's unique analytics solution, in 2018 Cedar Gate acquired Global Healthcare Alliance ("GHA") to add capabilities to design, implement and administer bundled payments, a form of value-based reimbursement in which payors and providers pre-agree upon a fixed payment for a specific episode of care.
Citra's technology is highly complementary with Cedar Gate's bundled payment administration and advanced analytics capabilities. Citra's core product, EZ-Suite, helps healthcare providers and payors administer and manage capitated contracts, a form of value-based reimbursement where providers take full financial risk and care oversight for a specific patient population. With the addition of Citra, Cedar Gate offers a seamless technology solution for payors and providers to participate in all forms of value-based reimbursement contracts and improve patient outcomes.
"The addition of Citra couldn't come at a better time," said David Snow, Chief Executive Officer of Cedar Gate Technologies. "Now, more than ever, health systems are looking for ways to transition away from fee-for-service as value-based care becomes the new standard. Through Citra's long-standing capitation capabilities, we now provide our clients with the ability to design, administer and optimize all risk-based arrangements."
Dean Mihas, Managing Director at GTCR, added: "This add-on investment for Cedar Gate further demonstrates our commitment to the Leaders StrategyTM. We partnered with Dave to build a technology platform to help the healthcare industry transition to value-based care. Through strategic acquisitions and internal development, we've successfully built a unique, scale asset within the HCIT space."
"As the healthcare industry increasingly adopts value-based reimbursement arrangements, we expect end-to-end software solutions to become increasingly important for providers and payors," added Sean Cunningham, Managing Director at GTCR. "The addition of Citra's EZ-Suite to the Cedar Gate portfolio creates a unique value proposition in the healthcare technology marketplace. We look forward to continuing to support Dave and the Cedar Gate and Citra teams in this next chapter of the combined company's growth."
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Healthcare, Financial Services & Technology, Technology, Media & Telecommunications, and Growth Business Services industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $18 billion in over 200 companies. For more information, please visit www.gtcr.com.
About Cedar Gate Technologies
Cedar Gate Technologies is a leading value-based care performance management company founded in 2014 by David Snow, a nationally recognized Fortune 50 CEO, in partnership with GTCR. Cedar Gate provides high-performance analytic, technological and advisory services to providers, payers and self-insured employers to enable them to meet and exceed the performance thresholds of value-based care contracts, networks and programs. Cedar Gate systems are helping clients realize value from over $91 billion of medical spend associated with risk-based contracts and programs that affect 3.2 million covered lives. Cedar Gate is the leading provider of prospective bundled payment solutions with 20+ years of experience and having processed more than 2.25 million distinct bundles. To learn more, go to www.cedargate.com.
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