New Century Health, a Brea-based healthcare benefits manager, has been bought by Chicago private equity firm Water Street Healthcare Partners for an undisclosed amount.
New Century Health works with insurance companies, the federal Medicare and Medicaid programs and employers to manage heart and cancer care benefits.
On New Century’s website, the company, which was founded eight years ago, said it uses the Internet to reduce what it called “variations in care” and to help its clients save money.
In a release, Water Street said that New Century’s revenue has risen more than 200% in the past three years to $50 million this year.
New Century and Water Street said that they are hopeful of expanding the company’s services to a broader base of payers, providers and patients around the country.
Water Street owns 12 healthcare companies and has more than $1 billion under management.
In 2007, Water Street spent $50 million for a majority stake in Alpine Biomed Corp., a Fountain Valley medical device maker.
Alpine, which had annual revenue of about $33 million, was sold last year to Natus Medical Inc. of San Carlos for $43 million.
