Healthation, Inc., a leading provider of core administrative systems for traditional and emerging healthcare payers and administrators, today announced a $14 million Series B investment led by ABS Capital Partners, a leading investor in later-stage growth companies, with participation from Hughes & Company and existing investor SilverStream Capital. Healthation will use the funds to accelerate the Company's continued growth with expanded sales and marketing while building additional operations, service and development capabilities. As a result of the financing, ABS Capital General Partner Mark Anderson and Hughes & Company Managing Director Travis Hughes will join the Company's board of directors.

"Traditional systems alone just can't adapt quickly enough to the rapid changes in healthcare, and that's where Healthation comes in," said CEO Darin LeGrange. "Our approach addresses these challenges quickly, with a speedy implementation process, configurable features, and the power needed to satisfy our partners and their customers. With this new injection of capital we'll be better able to provide what our customers need - and that ultimately means they can be more competitive in this shifting market." LeGrange joined Healthation in late 2012 and has already made meaningful impact on the Company by expanding offerings and broadening Healthation's channel partner relationships.

Healthation offers healthcare payers a robust and flexible technology platform to meet the challenges in administering healthcare benefits, including medical, dental, vision, pharmacy and life insurance. The Company currently serves customers in multiple payer segments including traditional managed care payers, state-based health insurance marketplaces, third party administrators and non-profit consumer operated and oriented plans. New risk sharing business models and relationships between healthcare providers and payers are expanding the definition of who pays for healthcare beyond traditional insurance companies. Consumers, healthcare providers, employers and payers will all be impacted. In addition to changes to the definition of a payer, there are also significant developments in the ways in which participants may be paid.

"Healthation is poised to capitalize on the dynamic changes in the healthcare market, and with a leader like Darin, the Company has seen accelerating demand for their solutions." said ABS Capital General Partner Mark Anderson. "We're impressed by how quickly he's already grown and refined the Company. This kind of progress will allow Healthation to acquire more customers as payers and providers have realized the need to immediately accommodate varied payers and payment arrangements."

Healthation's market-based segmentation strategy has five associated solution bundles, built to address the specific needs of challenges to these unique users:

Commercial Healthcare Payers and Administrators;
Consumer Operated and Oriented Plans (CO-OPs);
Health Insurance Marketplaces;
Medicaid Management Information Systems (MMIS); and
Accountable Care Organizations and Collaboratives (ACOs)

About Healthation, Inc.

Healthation is a comprehensive, rules-based, and user-configurable core administrative system that offers a single, Web-based platform for all healthcare lines of business, including medical, dental, vision and pharmacy. Today, Healthation supports 26 customers representing nearly 24 million members. The company's offerings are available via a SaaS subscription model in either an ASP or client-hosted environment. For more information, please visit www.healthation.com or follow the company on Twitter @ twitter.com/healthation and LinkedIn @ linkd.in/Healthation.

About ABS Capital Partners

At ABS Capital Partners, we have a simple mission"to invest in the very best late-stage growth companies. Our singular focus has allowed us to cultivate a deep understanding of what it takes to get promising businesses to the next level. Our priority is finding the best growth companies"not completing certain types of transactions or investing specific amounts of dollars. Our flexibility allows us to structure the right deal to support a company's growth trajectory and particular needs. We actively partner with CEOs to tackle the challenges of rapid expansion and create significant long-term value. Our partners are highly experienced at working with growth companies"each having spent between one and three decades in their industry as C-level executives, investment bankers, consultants or investors.

ABS Capital Partners specializes in four growth sectors"business and education services, health care, media and communications, and technology"and has invested in over 100 growth companies over the past two decades. With over $2 billion raised since inception, including $500 million in its latest fund, ABS Capital continues to build on its strong reputation for teaming with CEOs and market leaders to deliver strong returns to investors. For more information, please visit www.abscapital.com.