Verisys Tuesday announced it received a growth equity investment from Spectrum Equity and Cressey and Co. Verisys, a company that screens 5 million healthcare organizations and people in the industry every year, will use the $72.5 million investment to grow and expand its marketing and sales efforts.
Verisys acts as a “gatekeeper,” said CEO John Benson, to help prevent fraud. In 2012, the FBI estimated that between 3% and 10% of healthcare spending is lost to fraud.
Employers, sometimes, are on the hook. If they employ or contract with someone who's been excluded by HHS' Office of Inspector General and receive federal healthcare reimbursement for that person's services, they can incur fines. To avoid that fate, hospital systems, pharmacy systems and others use Verisys' Fraud and Abuse Control Information System, which pulls data from about 5,000 sources to identify debarments, exclusions, licensure status and other information.
“Our value proposition is that we are on the front end of the equation,” Benson said. “We're prospectively helping companies identify people and entities that have a record for fraud, abuse or waste and have been excluded or debarred.”
Government Management Services, the company that was rebranded as Verisys in 2007, was founded in 1992. Since then, it's grown to 225 people. This is the first time the company has taken on financial partners.