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Tag: CNSI

CNSI to merge with Tenn. health services company

McLean-based health information technology provider CNSI and Nashville, Tennessee-based health care management tech company Kepro have agreed to merge, the two firms announced Wednesday.

The combined company will provide government-sponsored health care agencies and payers with clinical services, provider management, health claims, processing and health analytics services. The merger is expected to close in December. Axios reported Wednesday the combined company makes close to $500 million in revenue.

CNSI CEO Todd Stottlemyer will lead the new company. Kepro President and CEO Dr. Susan Weaver will be president. Both will sit on the new board of directors.

“The combination of CNSI and Kepro aligns with the strategic objectives of both companies to deploy technology-enabled products, solutions and services that help our clients achieve their mission and better serve their priority populations,” Stottlemyer said in a statement.

Affiliated funds of Washington, D.C.-based private equity firm The Carlyle Group own CNSI, and funds affiliated with Apax Partners LLP own Kepro. Apax Funds will be exiting its investment through the merger.

“The combination brings CNSI’s leading health technology capabilities together with Kepro’s clinical expertise and unique service offerings, allowing the company to better serve its clients and improve care quality and health outcomes,” Dayne Baird, a CNSI board member and managing director at Carlyle, said in a statement.

The new company will maintain both the McLean and Nashville locations. It will rebrand in early 2023, according to a news release.

CNSI has 1,200 employees. Kepro has 1,700 employees across 17 offices, and a network of 4,500 doctors and 450 clinicians who serve on its advisory and review panels.

Federal Contractors/Technology: TODD STOTTLEMYER

The head of health information technology company CNSI since 2018, Stottlemyer remained CEO after the company changed hands in December 2021. Washington, D.C.-based private equity firm The Carlyle Group purchased CNSI, which was founded in 1994 as Client Network Services Inc., for an undisclosed amount. CNSI processes medical claims, billing and health benefits for Medicaid and Medicare.

Stottlemyer, a graduate of William & Mary and Georgetown University Law Center, previously partnered with Carlyle as a senior executive at BDM International. He is a 2020 recipient of the Northern Virginia Technology Council Hall of Fame Award and received the Northern Virginia Chamber of Commerce Lifetime Achievement Award in 2018.

He serves on boards for Wolf Trap Foundation for the Performing Arts and the William & Mary Foundation and is vice chairman of the Virginia Growth Opportunity Board, which oversees the state’s GO Virginia economic development program.

FIRST JOB: As a 13-year-old, assembling the sections of the Sunday New York Times for distribution and sale

BEVERAGE OF CHOICE: Ice-cold lemonade on a hot day

FAVORITE SPORTS TEAM: New York Yankees

The Carlyle Group to acquire CNSI

Washington, D.C.-based private equity firm The Carlyle Group announced Thursday that affiliated funds under its management have agreed to acquire McLean-based health information technology provider CNSI.

Financial terms of the transaction, which is expected to close in December, were not disclosed. Greenwich, Connecticut-based firm Alvarez & Marsal Capital Partners currently owns CNSI.

“We believe CNSI is well-positioned for continued success driven by its technical leadership and proven track record of innovation and execution,” Carlyle Managing Director Dayne Baird said in a statement. “CNSI operates at the unique intersection of technology, health care and government services, and we see significant growth opportunities ahead as the company leverages its unique capabilities and continues to develop market-leading solutions.”

Founded in 1994 as Client Network Services Inc., CNSI provides mission-critical systems that are aimed to better process medical claims, billing and health benefits for Medicaid, Medicare and related programs.

Todd Stottlemyer, CNSI’s CEO since 2018, will continue to lead the company. He previously partnered with Carlyle as a senior executive at BDM International Inc.

“We are delighted about this opportunity to partner with Carlyle as we continue to execute exquisitely for our clients, strengthen our market leading products and solutions, and drive innovation that improves health outcomes and lowers costs,” Stottlemyer said in a statement.

The Carlyle Group manages $293 billion of assets across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. It has more than 1,800 employees in 26 offices across five continents. Carlyle reported $1.6 million in revenue for the third quarter of 2021, bringing its year-to-date total to $6.78 million.

McLean health tech firm names senior VP, corporate strategy

McLean-based health information technology provider CNSI announced Monday it has hired Verlon Johnson as senior vice president of corporate strategy. 

Johnson was most recently the vice president of health care policy and program management for IBM Watson Health’s Government Health and Human Services business group. In her new role, she will help to develop and implement CNSI’s growth strategy.

“Verlon has a strong track record of advancing innovative health care solutions and outcomes through improvements in financing, quality and cost,” CNSI CEO Todd Stottlemyer said in a statement. “Her experience and expertise will help us shape our strategy, products and solutions to meet our clients’ current and future needs.” 

Before her time with IBM Watson Health, she worked with the U.S. Department of Health and Human Services’ Centers for Medicare and Medicaid Services. At IBM Watson Health she also managed a portfolio of projects totaling more than $50 million focused on Medicaid and Medicare improvements.

“I am excited to join a team that is passionate about advancing our nation’s health care goals of enhancing patient experiences, improving health care outcomes and lowering medical costs through state-of-the-art technology and innovative solutions,” Johnson said in a statement. “I am honored to use my knowledge and expertise to help build on CNSI’s successes as we continue transforming health care.”

Johnson earned her bachelor’s degree from Texas A&M University and her master’s degree in public administration from Texas Tech University.

Founded in 1994, CNSI provides cloud-based systems aimed to better process medical claims, billing and health benefits.

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