Data Dimensions turns paper into e-docs, draws HealthEdge investment

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Margie Manning

Quality and Content Editor- Tampa Bay Business Journal

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HealthEdge Investment Partners is placing a big bet on a company that turns paper forms into electronic documents.

HealthEdge, a Tampa-based private equity firm, invested an undisclosed amount in Data Dimensions, a Janesville, Wisc.-based company that helps manage business processes and workflow for its clients, who are in the insurance, financial services and government sectors.

There's a growing market for business process outsourcing and automation, as more companies want to focus on their core revenue generating activity and turn the various back office functions over to someone else.

"The trend of outsourcing back office functions has been active for a number of years now, with growth rates continuing to remain very strong," said Scott Heberlein, HealthEdge principal, in an email. "Most of the processing work Data Dimensions performs deals with various types of medical billing activities. As our country's health care system becomes more complex with changing regulations, billing, and the management of all the documentation behind the billing, becomes more complex. This complexity paves a solid growth path for leading BPO / automation providers like Data Dimensions."

Data Dimensions specializes in converting paper forms such as insurance and medical claims or loan applications, as well as documents such as drawings and X-rays, into electronic records.

Data Dimensions already has a solid reputation and an industry-leading position, said Phil Dingle, HealthEdge managing partner. The company will use the HealthEdge investment to hire more people, open new facilities, broaden its client relationships and explore new markets.

Data Dimensions is the fourth portfolio company in HealthEdge Investment Fund II, which launched in 2012 after the company closed its initial $60 million fund. HealthEdge took a majority stake in the company, with current Data Dimension owners retaining a minority ownership stake.

Margie Manning is Quality and Content Editor of the Tampa Bay Business Journal. She also covers banking, finance and professional services.