HNI Healthcare Secures $65 Million Investment from CRG and Expands Through Acquisition of MHG

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that CRG, an investment firm focused on healthcare, announced a $65 million investment in HNI Healthcare, a U.S.-based physician practice management company. The specific use of these funds has not yet been disclosed.

HNI Healthcare, established in 2002, is a technology-driven physician practice management company dedicated to delivering comprehensive, facility-based physician programs that enhance the quality of patient care. Through its technology, consulting, and management services, HNI Healthcare integrates hospital medical processes, protocols, communication, and clinical best practices. This enables hospitals to improve key care quality and performance metrics via a more clinically integrated care model, while helping hospitals and healthcare systems identify and rectify clinical and operational issues to strengthen their financial performance.

Operational consistency, standardized processes and protocols, and transparent accountability are the benchmarks of HNI Healthcare’s managed services model. HNI Healthcare’s consulting services provide hospitals with objective, third-party diagnostic assessments to identify clinical and operational failures that compromise care quality, organizational culture, and financial stability.

Image from HNI Healthcare's official website

HNI Healthcare has also developed VitalSigns, a SaaS-based software suite that leverages real-time, physician-generated data to provide analytics, reporting, communication tools, and resources to drive clinical and operational decision-making. Built on a hospital performance platform, VitalSigns also empowers clinical teams to identify and improve key quality metrics.

Regarding this investment, Scott Li, Managing Director of CRG, stated: “As the national healthcare system continues to transition toward a value-based care model, hospitals are required to deliver better outcomes at lower costs. HNI Healthcare’s technology-enabled strategy has delivered superior results for hospitals and their patients. We are excited to collaborate with the company and its management team to help hospitals provide exceptional patient services during these challenging times.”

Since its establishment in 2002, HNI Healthcare has raised $122 million through eight rounds of financing. On November 1, 2018, HNI Healthcare acquired the Cleveland-based Martin Health Group (MHG) for $25 million. Founded in 1987, MHG is a private company with 40 years of history, dedicated to providing inpatient care and staffing solutions for acute care and post-acute care hospitals in the U.S. Midwest. This acquisition has brought MHG’s extensive experience to HNI Healthcare, which will leverage this expertise to conduct operations across more than 50 hospitals in three U.S. states and serve over 400 specialized clinical providers.

MHG stated that the acquisition enables MHG operators and clients to expand their business scope and continue implementing their healthcare plans. “We are very excited about this transaction, as it allows us to leverage the strategies of both companies to provide our clients with industry-leading technology, staffing, and expanded services,” said John Martin III, Founder and CEO of MGH.

Following the acquisition, HNI Healthcare will retain MHG’s Cleveland office as a regional hub. John Martin III, CEO of MHG, will serve as Strategic Advisor to HNI Healthcare, while Anthony Bernardo, President of MHG, will assume the role of Division President at HNI Healthcare.

CRG, established in 2003, is a pioneer and innovator in the healthcare investment market, managing nearly $4 billion in assets. The company primarily makes investments ranging from $20 million to $200 million in the healthcare sector, covering areas such as medical devices, biopharmaceuticals, and diagnostic services. CRG provides growth capital to commercial-stage innovative healthcare companies through long-term debt and equity financing. Additionally, the company invests in intellectual property related to FDA-approved biopharmaceutical assets to address significant unmet medical needs.