Revolutionizing Records Release Solutions

Revolutionizing Records Release Solutions

With the explosion of medical information captured by disparate, unconnected systems, the need for efficient, compliant, and accurate Release of Information (ROI) providers is at an all-time high. We invested in Verisma because we believed they were the right business to meet this need.

Why we invested

	Highly regarded, patented software solution to replace a heavily manual process and mitigate risk in an ever-changing environment.
	Hyper focus on data breach and risk management around the movement of data to address cybersecurity issues.
	We had the ability to bring knowledge and resources from a prior investment in a similar business to overcome challenges.

Accelerating Growth

We identified four primary areas where we could leverage our deep operational expertise to help Verisma reach new levels of growth:

1. PROFESSIONALIZED MANAGEMENT TEAM
Added a new CEO, CFO, CTO, VP of Operations, and General Counsel through our robust network built through years of experience in the healthcare space.

2. PIPELINE GROWTH
New management team opened the doors to major health systems and closed on the two largest customers in company history during the pandemic - each worth $10mm+ in contract value annually.

2. PIPELINE GROWTH
Established KPIs to drive margin growth versus pure revenue growth. This disciplined approach brought attention to how revenue translated to profit, which caused Verisma's sales team to reconsider their sales metrics and the value of every contract.

4. TWO-EDGED REVENUE MODEL
At investment, Verisma was a single revenue model. Now, the company is focused on data flow both ways - for the provider and the payor - which mitigates risks and opens the door for new opportunities.

Supporting strategic M&A

NewSpring recently provided additional funding to facilitate Verisma’s merger with ScanSTAT to create a new market leader in ROI services. With combined strengths and resources, Verisma and ScanSTAT are scaling investments in people, technology, and services that will lead the HIM industry forward.

Growth by the numbers

AT INVESTMENT: <$10mm Revenue and EBITDA breakeven 20-25% Gross profit margin Labor driven service model, with technoloy enablement

AT EXIT: 10-15x Revenue growth with meaningful EBITDA 50% Gross profit margin Technology at the core of product offering

About NewSpring Healthcare

NewSpring Healthcare invests in innovative companies in the lower-middle market that improve the delivery of healthcare or bend the cost curve through technology and human capital efficiencies.