Bon Secours Mercy to Sell 51% Stake in Ensemble RCM Subsidiary

The stakeholders say private equity firm Golden Gate Capital can provide the financing needed to sustain Ensemble's 'exponential growth.'

Bon Secours Mercy Health will sell 51% of its equity in its revenue cycle management subsidiary Ensemble Health Partners to San Francisco-based private equity firm Golden Gate Capital, the stakeholders announced jointly this week.

Financial terms of the deal were not disclosed, and the companies did not say when they expect the sale to be finalized.

When the deal is finalized, Cincinnati-based Bon Secours Mercy Health will keep its partnership with Ensemble, and will hold minority owner status, with a seat on the company's board.

Ensemble will keep its management team, including founder and CEO Judson Ivy, and its headquarters will remain in Mason, Ohio.

The stakeholders said in their media release that the sale was made because Golden State Capital could provide the financing needed to sustain "the exponential growth Ensemble has achieved."

"Healthcare and the relationship between providers and payers are becoming increasingly complex, and the demand for our services is expanding significantly," Ivy said in prepared remarks.

"This partnership will support our continued growth and allow us to invest in new technologies, positioning Ensemble as a leading innovator in our field and allowing us to continue to deliver outstanding results and best-in-class services," Ivy said.

Ivy said that ceding majority ownership "is not a sale of the company, but the addition of a new value enhancing investment partner that is fully committed to our philosophy and mission."

Ivy founded Ensemble in 2014, and the company was purchased for $60 million in 2016 by Mercy Health, which merged with Bon Secours in 2018. In the past five years, Ensemble has grown to include 3,600 employees with operations in 30 states, and more than 60 partner hospitals, the company said

Bon Secours CEO John M. Starcher, Jr., said the proceeds from the sale will be invested back into the communities it serves. 

"This strategic infusion of additional capital will help Ensemble continue to expertly serve clients, while helping ensure Bon Secours Mercy Health can continue to improve the health and well-being of the communities we're privileged to serve for generations to come," Starcher said.