January 12th, 2016 | Elisa Lee
AUSTIN, Texas – January 11, 2016 – EmployerDirect Healthcare announced the closing of its Series C investment round with Dallas-based Dundon Capital Partners. Under the terms of the investment, Dundon Capital Partners has acquired a majority ownership position in the business. Financial terms of the transaction were not disclosed. The funding supports the growth of the company’s core product, SurgeryPlus®, a valuable supplemental benefit to employees of large employers with self-insured medical plan benefits. Currently, SurgeryPlus is available to over 275,000 members nationwide and affords them access to best-in-class procedures across EmployerDirect’s Surgeons of Excellence national network. Employees benefit from a zero out-of-pocket option, while employers save 30-50 percent in related procedure costs.
EmployerDirect plans to use the investment from Dundon Capital Partners to scale its technology infrastructure and expand operations. The company’s Surgeons of Excellence network includes pre-negotiated bundled rates to reduce surgery and related costs, while increasing access to high-quality care to participating employees. The bundled solution and industry low complication rates also eliminate unexpected costs to both the employees and employers. Through SurgeryPlus, procedures are available across 34 major categories, including orthopedic, spine, cardiovascular, bariatric, and general surgery along with a wide-range of minor outpatient procedures.
“We are excited to work with the Dundon Capital Partners team, their operational experience and financial backing will help us expand our employer base to more Fortune 1000 companies,” said Clint Hampton, CEO of EmployerDirect. “Our model provides high-quality, low-cost care for employees and their families, while delivering a hard dollar ROI to employers.”
Hampton announced that in addition to the funding, John Zutter, a Partner at Dundon Capital Partners and Bill Esping of EFO Holdings will serve on the company’s board of directors along with members from Austin-based TEXO Ventures, which has been the primary investor of EmployerDirect for the past several years.
Tom Dundon, Dundon Capital Partners’ Chairman and Managing Partner offered, “For many households, healthcare expenses are one of the largest sources of financial strain. Through SurgeryPlus, EmployerDirect has a better way for companies to provide their employees increased access to quality at a lower cost. It’s a benefit every large self-insured employer should consider.”
“EmployerDirect offers a revolutionary approach to planning and paying for high-quality surgical procedures,” said Dr. Phil Sanger of TEXO Ventures. “They have spent several years perfecting a model that bundles case rates and pays providers promptly. In an era when medical expenses are the leading contributor to personal bankruptcies and providers are chasing bad debt, this is a game changer. We are excited to partner with Dundon Capital Partners to continue to improve the healthcare landscape.”
 Expected member base as of April 1, 2016
About EmployerDirect Healthcare and SurgeryPlus
EmployerDirect is an innovative healthcare services business providing a high-quality and cost-efficient solution for large self-insured employers and their employees, which is creating a long overdue and positively disruptive change to the healthcare industry. The company’s core product, SurgeryPlus, a valuable supplemental benefit to employees of large employers with self-insured medical plan benefits, transforms the way employers provide and pay for planned medical procedures, saving 30-50 percent per procedure. With a national network of board-certified Surgeons of Excellence and high-quality facilities, SurgeryPlus covers numerous procedures with pre-negotiated bundled rates consolidating all costs for each episode of care. Dedicated Care Coordinators offer white glove concierge service to covered members, selecting physicians, scheduling appointments, transferring medical records, coordinating logistics, and following up post-procedure, reducing unnecessary stress and improving the employee experience. For more information about EmployerDirect Healthcare and SurgeryPlus, please visit www.edhc.com or call (855) 200-9511.
About Dundon Capital Partners LLC
Dundon Capital Partners LLC is a private investment firm headquartered in Dallas, Texas. Founded in 2015, Dundon Capital Partners LLC is focused on private equity and credit investments across industries, and looks to partner with best-in-class management teams to help companies achieve their long-term objectives. The firm is led by founder Tom Dundon, its Chairman and Managing Partner, who has more than 20 years of experience as an entrepreneur, operator, and investor across numerous industries.
About TEXO Ventures
TEXO Ventures is an Austin-based venture capital firm focused on building innovative healthcare companies through seed and early stage investments. The firm invests in passionate entrepreneurs dedicated to advancing the art, science, and business of healthcare, working side-by-side with company founders, providing both the capital investment and expert collaboration necessary to move young healthcare companies towards successful commercialization.
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