A Boston-based venture capital firm has acquired a majority stake in Health Payment Systems, Inc. as the Milwaukee-based health care technology company plans to expand nationally.
HPS announced Thursday that it has received an undisclosed lead investment from Boston-based SV Health Investors, LLC, along with an investment from Hexagon, Inc., a private investment company with offices in Denver and Milwaukee.
Founded in 2005, HPS offers an independent provider network sold to self-funded employer groups and a consumer financial wellness product that helps those participating in that network understand their medical bills. HPS works primarily with Wisconsin-based businesses that self-insure for their group health insurance.
As part of the deal, HPS chief executive officer Terry Rowinski will stay on as the company's president, while Tom Policelli, executive in residence with SV, will become its CEO.
Previously, Policelli was a co-founder and CEO of Minuteman Health, an HMO in Massachusetts and New Hampshire, and also co-founded and led Averde Health.
“I have known Terry and HPS for several years, and have been impressed from the start. The company has built a strong solution that now can be delivered to more consumers, employers, and providers in its current and future markets,” Policelli said.
Rowinski has been CEO of HPS since 2018. He joined the company in 2014 as its chief technology officer and became president and chief operating officer in 2016. Before joining HPS, Rowinski was COO of New Berlin-based BuySeasons Inc.
Rowinski spoke with BizTimes associate editor Arthur Thomas on the BizTimes MKE Podcastin fall 2020 about how COVID-19 has hit the HPS business and lessons learned from attempts to expand nationally.
HPS said SV’s investment will support its expansion both in Wisconsin and nationally, with a focus on the Upper Midwest, over the next few years.
HPS plans to maintain its downtown Milwaukee office, at 1000 N. Water St., as its national headquarters, Rowinski said. It is currently committed to a five-year lease at the office, after moving from its previous space at 735 N. Water St. in October.
Tom Flynn, managing partner at SV, has also joined HPS’ board of directors as part of the deal.
Flynn noted that “medical expenses and debt are a problem for employers, providers and most importantly, patients—particularly during the current pandemic. SV is proud to partner with an organization focused on delivering solutions to patients and their families.”
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