Caltius Equity Partners Announces Recapitalization of its investment in Health Payment Systems
February 3, 2021
Los Angeles, CA (February 3, 2021) – Caltius Equity Partners, a leading lower middle-market investment firm, has completed a recapitalization of its investment in Health Payment Systems, Inc. (“HPS” or the “Company”) to SV Health Investors, LLC (“SV”).
Since its inception, HPS has helped self-funded employers in the Upper Midwest reduce the cost of healthcare, while maintaining high levels of provider and patient satisfaction. The Company’s single-statement billing and patient financing services help families combat confusing and unaffordable medical bills, while its guaranteed payment model eliminates providers’ collection costs and risk.
Tom Flynn, Managing Partner at SV who has joined HPS’ board of directors, noted that “medical expenses and debt are a problem for employers, providers and most importantly, patients—particularly during the current pandemic. SV is proud to partner with an organization focused on delivering solutions to patients and their families.”
SV’s investment will support HPS’ expansion in the Upper Midwest and beyond. Tom Policelli, SV Executive in Residence, has joined the HPS leadership team as CEO. He partners with Terry Rowinski, who will become the Company’s President.
Previously, Mr. Policelli was a co-founder and CEO of Minuteman Health, an HMO in Massachusetts and New Hampshire. Prior to that, he was co-founder and CEO of Averde Health. Mr. Policelli also ran United Health Group’s consumer-directed health business and founded a new business unit within the company. He began his career at CIGNA Healthcare, and while at Monitor Company consulted with several leading healthcare companies.
“I have known Terry and HPS for several years, and have been impressed from the start. The company has built a strong solution that now can be delivered to more consumers, employers, and providers in its current and future markets,” said Mr. Policelli.
Jeffrey Holdsberg, Managing Director of Caltius Equity Partners and board member of HPS said, “Terry and the HPS team have done a great job of building a highly-effective tool that streamlines the payment experience for both patients and providers. SV is a great partner for HPS as they too, like Caltius Equity Partners, are focused on helping companies grow faster to reach their full potential. HPS will be able to greatly leverage SV’s leading healthcare experience, vast industry and operational network, and proven, long-term investment performance.”
About Health Payment Systems
Health Payment Systems is a privately-held healthcare technology and services organization offering solutions to enhance the consumer healthcare billing and payments experience, while driving value to healthcare providers, health insurance companies and employers. HPS’ single-statement billing and patient financing services help families combat confusing and unaffordable medical bills, while its guaranteed payment model eliminates providers’ collection costs and risk. HPS is headquartered in Milwaukee, Wisconsin.