#United States #Los Angeles #Diversis Capital #Meperia #Genesis Automation

Diversis Capital Merges to Transform Healthcare Supply Chain

In a significant move to revolutionize healthcare management, Diversis Capital, a prominent investment firm specializing in technology, has completed strategic acquisitions of three key players in the hospital supply chain sector: Genesis Automation Healthcare, Kermit, and Meperia. This groundbreaking merger aims to establish the industry's first comprehensive supply chain and inventory management platform, promising over $1 billion in savings for more than 100 hospitals and health networks across the globe.

Overview of the Merged Entities

The three companies combined under the Genesis brand offer unparalleled innovations in clinical traceability, procurement intelligence, and spend management:

• - Genesis Automation Healthcare is recognized for its advanced solutions in clinical traceability and supply chain automation. It boasts a range of prestigious clients, including Scotland's National Health System. The platform optimizes the journey of consumables and implants from suppliers to patients, while integrating seamlessly with Electronic Health Records (EHR) and Enterprise Resource Planning (ERP) systems.

• - Kermit specializes in cloud-based analytics and automation for physician preference items (PPI), facilitating real-time visibility for healthcare systems like Inova and Medstar. The platform ensures transparent pricing and contract compliance to drive down costs.

• - Meperia is the leader in procurement intelligence, aiding hospitals in centralizing and normalizing product data and providing alerts for effective inventory management. Its SaaS platform serves clients like Summit Health and Universal Health Services.

Addressing the Healthcare Supply Chain Crisis

Ron Nayot, Managing Partner at Diversis Capital, emphasized the crisis faced by the healthcare supply chain, marked by fragmented technologies leading to inefficiencies and increased costs. As hospitals manage diverse systems for various procurement needs, the resulting chaos undermines compliance and leads to shortages or excess waste.

Key challenges identified include:
1. Disjointed Inventory Processes: Efficient management of various products, from everyday supplies to specialized implants, requires tight inventory controls and comprehensive tracking.
2. Visibility Issues: Inconsistent data hampers the ability to track inventory accurately, heightening the risk of compliance breaches.
3. Data Quality: The outdated item master data complicates purchasing processes and analytics.
4. Lack of Integration: Many systems are not interconnected, preventing hospitals from having a unified source of truth, which is critical for compliance and operational efficiency.

The Genesis Solution

The merger of these companies aims to provide an integrated, intelligent, and compliant supply chain solution, transforming the fragmented landscape of healthcare procurement into a streamlined operation. With a unified platform, Genesis will enable:

• - Comprehensive inventory management, facilitating everything from standard supplies to complex implantable devices.
• - Real-time controls and oversight or compliance and proper cost management.
• - Improved data quality, ensuring accurate product information is synced across systems.
• - Strong integrations with EHR and ERP systems for a seamless operational flow.

The new platform ensures that clinical and financial processes align, allowing healthcare professionals to focus more on patient care while effectively managing supply costs.

Testimonials from Current Clients

Several current clients have lauded the impact of the three companies' technologies:

• - Simon Walsh from Manchester University NHS Trust highlighted a significant saving of £1.9 million through Genesis's platform, reinforcing the importance of cost savings which can be redirected toward enhanced patient services.
• - Mike Ewing from Frederick Health noted that over their nine-year partnership with Kermit, they achieved more than $10 million in total value across various medical categories.
• - Carl Waller from Northside Hospital stated that Meperia enables better data quality and standardization, streamlining purchasing across their facilities.

Nayot concluded, "The healthcare supply chain market is ripe for substantial reform. By combining these leaders, we are set to establish a clear frontrunner in the industry, equipped to drive essential change and enhance patient care processes."

Company Backgrounds

Founded in 2013, Diversis Capital focuses on technology investments in lower middle-market companies, partnering with management to help them thrive. With substantial expertise and a collaborative approach, Diversis connects offices to expand market reach effectively. Meanwhile, Genesis Automation Healthcare and Meperia emphasize the importance of predictive intelligence and automation in modernizing healthcare procurement processes.

For more information on Diversis Capital, visit Diversis.com. To learn more about Genesis Automation Healthcare, you can go here, while insights into Meperia's offerings can be found here or learn about Kermit here.