Blue Wolf Capital described its investment in StateServ as a “unique opportunity” and praised the work of the leading durable medical equipment (DME) provider as “pioneering”.
The private equity firm’s investment remained undisclosed and StateServ CEO Paul DiCosmo will continue to lead and retain a stake in the company, which has a national network of 1,300 DME provider locations, along with 21 company-owned warehouse facilities.
Arizona-based StateServ began in 2004 by providing high-quality and reliable equipment to hospice patients in its home state and now provides DME benefit management solutions to more than 550 hospice providers in 46 states.
Blue Wolf principal Jeremy Kogler expressed his hopes that, with an ageing population leading to an increase in demand for such services, the investment would add value to the company.
Praising the work of StateServ, which he says “enables clinicians to focus on their primary role – patient care”, Kogler explained: “This is a unique opportunity for Blue Wolf to invest in a platform with a market leading position in a rapidly consolidating industry.
“We are excited to work with Paul and his team to further enhance the value of the business.”
This proposed further enhancement chimes with StateServ’s mission to expand and innovate.
In 2010, it launched StateServ Network Services which through nationwide DME providers and in conjunction with StateServ’s DMETrack software, provides a full range of DME services, management, access and technology.
Referencing the innovations, CEO DiCosmo said: “Blue Wolf’s investment, along with its operational expertise, will allow us to improve and expand our proprietary software solution (DMETrack)™ which provides workflow automation, real-time reporting, and analytics to optimize operational, clinical, and financial performance for our customers.
“We will continue to add DME providers to our national network, and we expect to expand into other post-acute care segments. Blue Wolf shares our goal of making it easier for our customers to provide essential products that benefit patients and their families with quality and compassionate care.”
Blue Wolf managing partner Adam Blumenthal said of StateServ: “The company’s technological advantage and commitment to innovation and quality will serve it well as it pursues a range of value-building initiatives, including strategic acquisitions.
“This is a signature Blue Wolf investment, and we look forward to building the company as we grow our footprint in this exciting market.”