Cincinnati-based Bon Secours Mercy Health will sell 51 percent of equity in Ensemble Health Partners to a private equity investment firm in San Francisco in a deal valued at roughly $1.2 billion, people familiar with the matter told The Wall Street Journal.
Ensemble, a Mason, Ohio-based national revenue cycle management provider, announced the investment by Golden Gate Capital in a news release May 29.
The RCM provider said Golden Gate Capital's investment will allow Ensemble to serve healthcare partners via technology and services improvements.
"Healthcare and the relationship between providers and payers are becoming increasingly complex, and the demand for our services is expanding significantly," said Judson Ivy, founder and CEO of Ensemble. " This is not a sale of the company, but the addition of a new value-enhancing investment partner that is fully committed to our philosophy and mission."
Ensemble said Bon Secours Mercy Health will remain a commercial partner to Ensemble and remain a minority owner in the company. The health system will also continue to serve on Ensemble's board.
The deal must still go through the regulatory approval process.
Editor's note: This story was updated on May 31.
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