Change Healthcare pursues initial public offering - Southern Business Review

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Monday, March 25, 2019

Change Healthcare pursues initial public offering




Change Healthcare, a Nashville-based health tech company, has filed for an initial public offering with the Securities and Exchange Commission in an effort to raise $100 million.


Change Healthcare, which was formerly called Emdeon before it purchased Brentwood-based Change Healthcare, provides data and analytics to hospital and health care clients to cut costs and improve clinical outcomes.


The company, led by CEO Neil de Crescenzo, filed to offer its shares on the Nasdaq Global Select Market on March 15 under the trading symbol “CHNG.”


"We believe our size, scale, thought leadership and prevalence across the healthcare ecosystem help make us a preferred partner for innovative technology companies and industry associations focused on driving standardization and efficiencies in the healthcare industry," Change Healthcare said in its SEC filing.


Emdeon, a revenue cycle management company, went public in 2009 and became a privately held company again in 2011 after a fund managed by The Blackstone Group bought the company for $3 billion. 


Emdeon bought Change Healthcare for as much as $185 million in 2014. Emdeon was a health payment company at the time and Change Healthcare provided tools to help patients understand benefits and manage health care costs. Christopher Parks created Change Healthcare in 2007 after navigating health care system challenges with his parents, who both suffered from cancer. Change Healthcare received $2.1 million in investment from the state's TNInvestco program. 


in 2016, Change Healthcare merged with a division of tech giant McKesson to improve medical billing and reimbursements. McKesson owns 70 percent of the joint company, according to the SEC filing submitted for a public offering.


Change Healthcare serves about 5,500 hospitals, along with more than 100,000 dentists and 30,000 pharmacies. It employs 14,000 people. The company generated $3 billion in the year through March 2018 and a net income of $192 million.


Reach Jamie McGee at 615-259-8071 and on Twitter @JamieMcGee_.