HCAP Partners makes follow-on investment in TCS Healthcare Technologies

HCAP Partners, a California-based private equity firm and impact investor, has made a follow-on investment in TCS Healthcare Technologies, a provider of managed care software solutions. 

The funding will support the acquisition of DataSmart Solutions, LLC, a predictive risk analytics software company. Terms of the investment have not been disclosed.

TCS software solutions are designed to support the needs of health plans, TPAs, ACOs, and other risk-bearing organisations by optimising clinical outcomes, maintaining compliance, and improving financial and operational excellence. The acquisition of DataSmart accelerates the company's product development roadmap for the ACUITYnxt SaaS platform, a comprehensive suite of utilisation management and population health tools for managed care operations.

DataSmart technology leverages disparate information sources—claims data, health records, lab work—and develops a risk stratification profile for a given population utilising the industry-leading Johns Hopkins ACG System. By integrating the predictive risk analytics capabilities of DataSmart, TCS will be able to identify case management and wellness interventions earlier to further curb the cost of increasing health expenses.

"This transaction allows TCS to continue enhancing its ACUITYnxt platform, driving improved patient health outcomes and lowering cost of care," says Hope Mago, Partner at HCAP Partners. "The TCS team has done a tremendous job developing and bringing to market the ACUITYnxt SaaS platform and we look forward to supporting them as they scale the business through continued investments in the software and potential future acquisitions."

"As an HCAP Partners portfolio company, TCS is not only dedicated to delivering best-in-class solutions for our clients, but also to creating quality jobs for our employees," says Deborah Keller, CEO of TCS Healthcare. "We are excited to gain a new set of talented colleagues from DataSmart who will benefit from HCAP's Gainful Jobs Approach while we also gain technology that will help our clients identify and positively support members in their population who are at risk for both medical and social reasons."