Council Capital buys MedicalServiceQuotes

Council Capital said on April 9 that it bought MedicalServiceQuotes.com, adding a software platform used by payers and employers to shop for medical and pharmacy services. (councilcapital.com) The seller’s platform, known as MSQ, helps buyers procure and manage ancillary services and pharmacy benefits with pricing and performance data, according to Council Capital’s announcement. Terms of the deal were not disclosed. (councilcapital.com) Council Capital said investment firm PMPK backed the transaction with financing and advice, and named Chris Feeney and Ken Hannigan as the executives supporting the deal. MSQ founder and chief executive Kent Morgan said the company would use Council Capital’s resources to “scale our impact” with payers and employers. (councilcapital.com) In plain terms, MSQ sells procurement software for healthcare claims buyers: one digital front door where an insurer or employer can compare vendors, route work, review bills, and track results. Pulse 2.0 reported the platform is used in workers’ compensation and auto no-fault claims, two insurance markets that rely heavily on outside service vendors. (pulse2.com) Ancillary services are the add-on pieces around a medical claim, such as diagnostics, durable medical equipment, transportation, or other support services that are often purchased from outside vendors. Pharmacy benefits cover the prescription-drug side of a claim, where buyers try to control cost, network access, and utilization. (councilcapital.com) Council Capital focuses on healthcare services and healthcare information technology, and says it invests in companies where operating changes can improve growth. Mergr lists the MedicalServiceQuotes deal as Council Capital’s ninth transaction in healthcare services and its 23rd transaction in the United States. (councilcapital.com) (mergr.com) That focus fits a broader private-equity playbook in healthcare software: buy tools that sit between payers, employers, and service vendors, then expand them with more workflow, analytics, and contracting functions. Council Capital said this acquisition is meant to deepen procurement and analytics capabilities for healthcare buyers rather than add a provider-facing asset. (councilcapital.com) (mergr.com) MedicalServiceQuotes is based in Castle Rock, Colorado, according to deal databases and trade coverage. Council Capital is based in Nashville, Tennessee, and describes itself as a healthcare-focused private equity firm founded in 2000. (healthcaredealflow.com) (pitchbook.com) The immediate next step is integration: keeping MSQ’s marketplace and analytics tools in front of the same payer and employer customers while Council Capital pushes for growth. For buyers of claims services, the ownership change signals that procurement software is becoming a larger target for healthcare investors. (councilcapital.com)