eviCore healthcare


Sector(s) | Subsector(s) Healthcare | Payor / Payor Services
Investment Year 2010
Status Past | Acquired by Express Scripts Holding Company
Location Bluffton, SC
Region North America
Exited Year 2017

eviCore healthcare is a provider of medical cost management services for payors and risk-bearing providers.

TA helped eviCore healthcare:

  • Recruit a new CFO, CTO and Head of Sales
  • Roll out a successful rebranding process
  • Transform from a single-product to a multi-product company
  • Source and execute numerous complementary acquisitions

About eviCore

eviCore healthcare provides cost containment services for commercial, Medicare Advantage and Medicaid payers, and maintains medical benefits management (MBM) for more than 100 million individuals nationwide. Their strength and breadth of MBM expertise—providing Cardiology; Gastroenterology; Laboratory Management; Medical Oncology; Musculoskeletal; onConnect Comprehensive Oncology; Post-Acute Care; Radiation Oncology; Radiology; Specialty Drug Management; and Sleep solutions—allows them to continuously bring their clients practical, innovative and effective strategies that reduce costs while guiding providers and patients to higher quality, evidence-based care. The company was formed by the transformative merger of MedSolutions, TA’s original investment, with CareCore National, which together rebranded as eviCore healthcare in 2015.

The Investment Opportunity

TA has a deep history of investing in profitable growth companies, particularly within the healthcare sector. As an active investor in payor services, we regularly conduct research pertaining to industry trends within the complex global healthcare market. TA was seeking to partner with a company that was having a meaningful impact on cost containment and believed that MedSolutions (now eviCore healthcare) possessed a strong foundation with significant potential for further growth. In November 2010, TA completed a minority investment in MedSolutions.

Adding Value to Scale Growth

TA believed that MedSolutions possessed the service offerings and customer base that would allow the company to scale in an efficient and effective manner. We also recognized that, given high medical cost inflation for certain modalities of care, there was a significant need to address the complex healthcare system to create a balance between spending and quality of care. TA viewed the investment as an opportunity to back a company that could penetrate an underserved market and provide innovative and high quality cost management services.

By helping to recruit top industry talent and establish a technology-driven approach, TA worked closely with management to develop a business model that leant itself to growth and development in several key areas. Importantly, we believe TA’s deep network of resources and contacts played a vital role in the origination and execution of the merger between MedSolutions and CareCore National. The combination of the two companies provided substantial cost synergies and improved operational efficiencies. In addition to the rebranding process, TA supported eviCore healthcare’s acquisition of Triad Healthcare, which enabled the company to expand into the musculoskeletal field.

Today, eviCore healthcare is a national leader in integrated, innovative intelligent care management solutions for managed care and risk-bearing providers. During its partnership with TA, the company’s member base grew from 10 million to over 100 million. In December 2017, eviCore completed its sale to Express Scripts (NASDAQ: ESRX), the largest administrator of prescription drug benefits in the U.S.

Case studies have been selected for illustrative purposes for management teams of growth companies considering a partnership with TA and should not be considered an offer or solicitation of services or an actual or implied endorsement of TA or any security, investment or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of TA. A list of investments for the past 25 years is available on this website.