Waystar Acquires Medicare RCM Company eSolutions at $1.3B Valuation


Waystar, a provider of healthcare payments software, announced a definitive agreement to acquire Francisco Partners-backed eSolutions, a revenue cycle technology company with unique Medicare-specific solutions at a $1.3B valuation, according to sources close to the deal. In bringing these two industry leaders together, Waystar will be the first technology to unite both commercial and government payers onto a single payments platform. The transaction is expected to close later this year, subject to customary conditions and approvals.

eSolutions Background

Founded in 1999, eSolutions’ technology maximizes revenue collection, accelerates cash flow, and reduces administrative burden across numerous sites of care. The company has over 6,000 payer connections and maintains a powerful and growing data set of billions of transactions. In addition to hospitals and ambulatory providers, eSolutions has deep expertise in serving the post-acute market across the entire revenue cycle, including skilled nursing, senior living facilities, home care, hospice, federally qualified healthcare centers (FQHCs), and durable medical equipment providers. eSolutions is backed by Francisco Partners.

“eSolutions is thrilled to be joining forces with Waystar, a company like ours that relentlessly focuses on delivering exceptional customer service,” said Gerry McCarthy, Chief Executive Officer of eSolutions. “The combination of our technology platforms and data solves a major pain point in revenue cycle management to drive stronger results for our clients, partners, and for healthcare.”

Acquisition Creates Unified Healthcare Payments Platform

Medicare has become the largest payer in the United States and as baby boomers age, the mix of insurance coverage is increasingly shifting to Medicare. Historically, providers have had to leverage two different systems – one to handle commercial claims, and another to handle Medicare. For healthcare providers, leveraging a single, end-to-end platform to manage both private and government payments solves a major pain point and creates significant efficiencies, freeing up time to deliver care.

“Together, Waystar and eSolutions will deliver unprecedented innovation to the industry, helping healthcare organizations accelerate revenue collection while reducing administrative expenses and repetitive tasks,” said Matthew Hawkins, Chief Executive Officer and board member of Waystar. “Uniting our companies’ data sets will further power Waystar Hubble, our artificial intelligence solution, providing access to even greater insights and value for our clients. We have long-admired eSolutions for its unique Medicare-specific revenue cycle capabilities, which are a perfect complement to the Waystar platform. We are excited to move forward as one team.”

6th Waystar Acquisition Since 2018

Waystar has integrated several other transformational technologies onto its single instance cloud-based platform since uniting Navicure and ZirMed in 2017. This marks Waystar’s sixth acquisition in the last couple years, as the company rapidly expands within the space (not including their own $2.3B acquisition by two private equity firms last year).

Recent acquisitions include Recondo, a patient estimation and prior authorization technology, PARO, a presumptive charity scoring solution, UPMC’s Ovation, a claims monitoring tool, and Connance, leveraging predictive analytics to offer agency manager, advanced propensity to pay (AP2P), and presumptive charity. Waystar is backed by EQT, Canada Pension Plan Investment Board, and Bain Capital.