Irvine-based Renovo Solutions, whose medical equipment maintenance management services, consulting services and networked medical device data systems are used by hospitals and health systems to reduce equipment and medical device expenses, announced Jan. 11 two strategic moves designed to turbocharge growth: a new investment round and a new chief executive, longtime medical device exec Bill Newell.
Chicago-based Water Street Healthcare Partners, which focuses on healthcare investments, provided an undisclosed amount. Water Street, which operates a variety of healthcare-focused investment funds, is reported to have more than $2 billion of assets under management, and raised a $860 million private equity fund a couple years ago.
Renovo Solutions was founded in 2009 by clinical engineers Sandy Morford, Haresh Satiani and Joseph Happ.
The company said it aims to “reinvent and simplify” medical device management for healthcare organizations through its healthcare technology management programs.
Its offerings are pitched as being able to help hospitals and health systems realize 15% savings or greater on their medical equipment maintenance costs, compared to their prior spending.
With a 7,000-square-foot headquarters in Irvine and one satellite location in Ohio, Renovo currently serves north of 300 health systems across 37 states, according to Morford.
“Orange County, in general, is a ‘high-tech’ center in Southern California, especially for the medical device industry,” Morford, the company’s prior CEO, told the Business Journal in an email.
For a company that aims to bring down the costs of using those devices in settings like hospitals and clinics, “we wanted to be located in the center of it all.”
New CEO
New CEO Newell previously served leadership roles at global medtech firm Baxter International Inc. (NYSE: BAX) and dental device company Dentsply Sirona Inc. (Nasdaq: XRAY).
“I am very proud to work with Sandy, Renovo’s co-founders and the entire team to advance the company’s mission,” Newell said in a statement. “Working together, we will invest to expand and enhance Renovo’s capabilities to address the full spectrum of customers’ constantly changing needs in managing their technology assets.”
The four members of Renovo’s executive management team report having “in excess” of 100 years of clinical engineering experience.
“I’m very excited about the steps we’re taking to advance Renovo and our one-of-a-kind offering,” Morford said. “My colleagues … and I founded this company with a clear mission: to reinvent the concept of medical and life sciences equipment management. We have accomplished this and so much more.”
As Newell takes the helm of the company, Morford will assume the role of chief commercial officer. Both will join Renovo’s board of directors.
Happ and Satiani will continue to serve in their C-suite roles, the company said.
Growing With Water Street
Since its 2005 founding, Water Street has made more than 100 investments in growing middle-market healthcare businesses, including Zenith American Solutions, which is now the nation’s largest independent third–party administrator.
Water Street said its investment will assist Renovo’s team in expanding its offerings, including enhancing RenovoLive, the company’s computerized management system, and scaling its national footprint.
