Pouschine Cook Capital Management

MedPay Corporation

MedPay Corporation was the parent of Third Party Solutions, Inc. (“TPS”), originally a provider of durable medical equipment for home use. In 1990, TPS became the first company to introduce a program to guarantee payment of workers’ compensation prescriptions for pharmacies.  In 1999, at the time of investment by Pouschine Cook, TPS was the only company offering such services in the United States.

Insight

Although healthcare services-related investments were out of favor at the time, Pouschine Cook saw that TPS had a strong position in a growing sector. With a solid information systems platform, the company performed a verification and payment service that freed up substantial time for overworked pharmacists. The valuable service was not used by numerous pharmacists inside existing chain customers due to a lack of sales and marketing efforts. As such, there was an opportunity for significant growth in the business.

Flexibility

Pouschine Cook, utilizing its experience in investing in healthcare services companies and, in particular, in companies processing claims, assisted another private equity firm in evaluating and financing the acquisition of TPS. The acquisition was completed with Pouschine Cook purchasing a strategic non-control equity position in the company.

Enhancement

Pouschine Cook rolled up its sleeves and worked closely with its co-investor and management to substantially grow the business. Greater emphasis on sales and marketing allowed for increased penetration among existing customers and new products were introduced, providing avenues for additional growth. Management strength, depth and upgraded systems and processes significantly strengthened the company’s infrastructure, while reducing costs overall. Revenues and EBITDA more than tripled over a four year period despite a significant recession.

http://www.tpsrx.com/