Carlyle Acquires Knack RCM and EqualizeRCM: Creating a Global AI-Native Healthcare RCM Platform
Carlyle, a global investment firm, has recently acquired a majority stake in Knack RCM and EqualizeRCM, two prominent U.S. healthcare revenue cycle management providers. This acquisition aims to create an AI-native, global, multi-specialty RCM platform. The investment funds for this acquisition come from Carlyle Asia Partners VI (CAP VI) and Carlyle Asia Partners Growth II (CAPG II). The terms of the transaction have not been disclosed. The founders of Knack RCM and EqualizeRCM, Rajiv Sharma and Nagi Rao, will continue to be involved in the platform through reinvestment.
Knack and Equalize are specialized healthcare RCM providers catering to various segments such as physician groups, DME providers, rural hospitals, and other specialty providers. They offer expertise in areas like DME, anaesthesia, eyecare, behavioural health, rural hospitals, urgent care, and multi-specialty physician groups. The combined platform is expected to enhance operational scale, diversification, delivery footprint, leadership depth, and accelerate AI capabilities to benefit clients.
Knack brings global delivery across the U.S., India, and the Philippines with its intelligent revenue engine, Workmate. EqualizeRCM complements this with its established delivery scale in the U.S. and India, along with proprietary payer enrollment platforms and advanced AI-driven tools like Bill Smart for denial prediction and avoidance. The AI-native platform of Equalize has shown commercial success by displacing large-scale vendor contracts at leading DME manufacturers.
Carlyle's Partner, Kapil Modi, highlights the rapid growth of the U.S. healthcare revenue cycle market and the potential of Knack and Equalize in meeting the evolving needs in healthcare RCM. The founders of Knack and Equalize express their excitement about the partnership and the value it brings to clients. The CEO of Knack RCM emphasizes the importance of addressing critical financial risks faced by clients to improve financial health and patient care.
Carlyle aims to build a scaled physician and rural hospital RCM platform by pursuing additional opportunities in the RCM industry. The investment extends Carlyle's experience in investing in technology and tech-enabled services, with a focus on healthcare technology platforms. The company plans to leverage its expertise to scale the combined Knack and Equalize platform and add synergistic assets to the RCM platform.
In conclusion, Carlyle's acquisition of Knack RCM and EqualizeRCM marks a significant step towards creating a robust, AI-native, multi-specialty RCM platform to address the evolving needs of healthcare providers in the U.S. and globally. The partnership aims to enhance operational efficiency, drive innovation, and deliver tailored solutions to support healthcare organizations in improving financial health and patient care.