September 9, 2021
The company has been adding to its offerings in recent years, but a new owner in Boston-based Bain Capital Private Equity could accelerate that growth.
CLEVELAND, August 1, 2021 – PartsSource Inc. wants to simplify the medical equipment parts and service marketplace.
The Aurora-based company got its start in 2001, but it's seen a lot of recent growth. In the past four years, the company has gone from having 100 hospitals on its enterprise model to more than 1,200, said president and CEO Philip Settimi. In total, it serves more than 3,500 hospitals and 15,000 clinical sites in the U.S., as well as some outside the country, with its marketplace of more than 6,000 suppliers. “And it's growing rapidly every single day," Settimi said. Settimi joined PartsSource as CEO in 2014. He's a physician by training who had been working in medical technology and health care IT. Health care systems had turned to software for patient management, creating efficiencies and helping doctors better assess data, he said. He thought that kind of digital transformation could be beneficial throughout the systems.
PartsSource focuses on providing that in the medical equipment parts space. When it began two decades ago, it focused on creating a marketplace that has become more digital over time. In the years since Settimi joined, PartsSource has been growing and adding more services for its customers. And Settimi sees a lot of growth opportunities with the recently announced acquisition of PartsSource by Bain Capital Private Equity in Boston. The company is not disclosing the terms of the deal with its current owner, Boston-based Great Hill Partners, but the Wall Street Journal has reported that the deal values PartsSource at $1.25 billion. The acquisition is expected to close in the third quarter of 2021.
PartsSource takes on the complex medical supply chain for its customers, bringing thousands of vendors and service providers into one space. It has about 250 employees, the majority of whom work in Northeast Ohio. Settimi declined to share the company's annual revenue. PartsSource is a controlled marketplace, rather than an open one. The company draws on data to find the most reliable and cost-effective suppliers for its customers, Settimi said. It also has rapid-response teams on call for customers who are having trouble finding just the right part or product. The end result of having a more automated approach is more "clinical availability," Settimi said, as medical providers are less likely to have to turn patients away because a piece of equipment is being replaced or repaired. But the medical industry is still relatively "analog" when it comes to the equipment supply chain, Settimi said. It can be difficult to find the best source for a product, especially on short notice. So PartsSource created the procurement software medical systems need to automate that process alongside its marketplace of products and services." We've really created this turnkey purchasing platform for teams in mission-critical roles in health care," Settimi said.
PartsSource has been adding to its product and service offerings. The company recently was acquired by Bain Capital Private Equity.