Kaufman, Hall & Associates, LLC (Kaufman Hall), a leading healthcare and higher education management consulting and advisory services firm, has entered into a definitive agreement for Claro Healthcare, a premier healthcare consulting firm, to join Kaufman Hall.
For more than 30 years, Kaufman Hall has provided leading hospitals and health systems with world-class management consulting on strategic financial planning, treasury and capital markets, mergers and acquisitions, and performance improvement. Claro Healthcare is the leading clinical documentation, hospital operations, and mid-revenue cycle improvement platform, blending technology, professional services, and domain expertise to deliver significant return on investment to providers across financial, quality, and compliance metrics.
R. Wesley Champion, Managing Director and Chief Executive Officer, Kaufman Hall, noted that the combination will support Kaufman Hall's efforts to help healthcare organizations pursue financial, operational, and quality improvement.
"Healthcare providers are under growing pressure to achieve and demonstrate excellence in all facets of operations, including revenue management and quality outcomes—in the face of rising expenses, declining margins, and changing payment models," Champion said. "Together, the complementary services and cultures of Kaufman Hall and Claro Healthcare will position us to jointly deliver a whole new level of integrated improvement services to healthcare providers, who are more challenged than ever to achieve the financial, operational, and quality performance necessary to carry out their missions of community health."
Venanzio Arquilla, Chairman and Managing Director, Claro Healthcare, said the arrangement will allow both companies to draw on their complementary expertise and experience to better serve their clients.
"We are excited about the opportunity to collaborate with Kaufman Hall, especially given its strong reputation and sought-after service offerings," Arquilla said. "Kaufman Hall possesses a deep foundation in helping organizations benchmark performance against their peers. This arrangement will be a strong cultural fit for both of our organizations, given our shared technical and collaborative approach to consulting—and our likeminded commitment to always finding the best solutions for our clients."
Jason Shideler, Managing Director on the Health Care team of Madison Dearborn Partners—Kaufman Hall's majority investor—cited the combination's potential to provide healthcare organizations with unmatched integrated operational improvement services.
"Claro Healthcare is well-regarded as the industry leader in Clinical Documentation Improvement," Shideler said. "This combination provides Kaufman Hall with significant expertise in revenue cycle and greater scale to its current performance improvement practice, which is a key area of focus given the broader economic environment for hospitals and health systems."
Claro Healthcare will retain its brand and be referred to as "Claro Healthcare, a Kaufman Hall company." The deal is expected to close in mid to late October.
TripleTree is Claro Healthcare's exclusive financial advisor in connection with the transaction. McDermott Will & Emery LLP is legal counsel to Claro Healthcare. Kirkland & Ellis LLP is legal counsel to Kaufman Hall.