The private equity firm Frazier Healthcare Partners has acquired the post-acute software company MatrixCare from ResMed (NYSE: RMD).
The transaction makes MatrixCare a standalone company, rather than a subsidiary. Financial terms were undisclosed. In the wake of the deal, the company appointed Frazier Executive in Residence Jonathan Lujan as CEO.
Becoming a standalone corporation will enable MatrixCare to move more nimbly and focus more squarely on customer needs, according to Lujan.
“We don’t have to compete internally with a large parent company for attention and investment, against other businesses that were serving very different markets and different strategies and different priorities,” Lujan told Hospice News. “This is going to allow us to make decisions faster, invest with greater focus and really organize ourselves around our customers’ priorities. Our commitment to customers does not change, just our ability to execute better and faster.”
MatrixCare is a provider of cloud-based electronic health record and revenue cycle management solutions purpose-built for post-acute care settings, including skilled nursing, senior living, home health, hospice and life plan communities.
The company’s priorities include product prioritization, improving interoperability and building out its automation and AI capabilities, Lujan said.
“There are opportunities to reduce administrative burden in clinical documentation in revenue cycle support and other workflows. I want us to approach AI really pragmatically,” Lujan said. “The question isn’t how much AI we can put into MatrixCare. Really, the question is where the technology can eliminate administrative work for our customers, from documentation all the way to analysis. We need to be faster and better around all that, and we’re going to do that.”
Lujan most recently served as the CEO of Sight Growth Partners, an ophthalmology management organization. Previously, he served as vice president and general manager of Lifeline Vascular Care at DaVita and held multiple executive leadership roles at Surgical Information Systems. Earlier in his career, Jonathan held leadership positions at GE Healthcare and J.P. Morgan’s Healthcare Investment Banking Group.
A number of factors drew Lujan MatrixCare, including a desire to work in post-acute care due to its importance in the healthcare ecosystem. He also cited MatrixCare’s strong position in the market and the opportunity to expand and hone MatrixCare as a standalone company.
“It’s an amazing opportunity to take a really good company and help it realize much more of its potential. Becoming an independent company creates a really rare opportunity that many companies don’t get a chance to have normally, and it’s an opportunity to ask: if we were redesigning Macy’s care today solely around the needs of our customers, what would we do differently?” Lujan said. “We don’t have to start up a new company because there’s such a strong foundation, but now we have the focus and the investment to make those decisions quickly and execute quickly.”
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