Dallas-based Cedar Springs Capital and Fort Worth-based Crestline Investors Inc. have partnered to acquire a majority interest in an Oregon-based patient financial engagement company called CarePayment. As a result of the deal, CarePayment will relocate its headquarters to Nashville.
CarePayment said the investment “severs all ties with the company’s prior ownership.” Cedar Springs and Crestline plan to invest significant capital to capitalize on CarePayment’s recent growth momentum, which saw CarePayment sign several high-profile providers and expand its reach to more than 30 states.
CarePayment’s move from Portland, Ore., to Tennessee, where it has an existing office, will put it closer to most members of its executive team. Additional employees will be added as needed. While the main offices will be in Nashville, CarePayment’s operations center will remain in Portland.
Ed Caldwell, chief revenue officer for CarePayment, says being closer to current and prospective clients in Nashville will “allow us to offer even better service to our provider partners and their patients, as well as pursue additional opportunities for growth and expansion.”
Colin McGrady, managing partner at Cedar Springs Capital, said it was attracted to CarePayment because of its “unique, unmatched value to both patients and providers.
“The burdens of rising out-of-pocket costs for patients, regardless of what type of health insurance coverage they have, coupled with the challenges of rising bad debt for providers are not going away anytime soon,” McGrady said in a statement. “CarePayment, through its strong leadership team, is perfectly positioned to provide immediate relief, and we could not be more proud to support its continued growth going forward.”