HCAP Partners, a California-based private equity firm and nationally recognized impact investor, has made a follow-on investment in TCS Healthcare Technologies, a provider of managed care software solutions. The funding will support the acquisition of DataSmart Solutions LLC, a predictive risk analytics software company.

TCS software solutions are designed to support the needs of health plans, TPAs, ACOs, and other risk-bearing organizations by optimizing clinical outcomes, maintaining compliance, and improving financial and operational development. DataSmart technology uses disparate information sources—claims data, health records, lab work—to develops a risk stratification profile for a given population utilizing the Johns Hopkins ACG System.

“This transaction allows TCS to continue enhancing its ACUITYnxt platform, driving improved patient health outcomes and lowering cost of care,” commented Hope Mago, partner at HCAP Partners. “The TCS team has done a tremendous job developing and bringing to market the ACUITYnxt SaaS platform and we look forward to supporting them as they scale the business through continued investments in the software and potential future acquisitions.”

“As an HCAP Partners portfolio company, TCS is not only dedicated to delivering best-in-class solutions for our clients, but also to creating quality jobs for our employees,” said Deborah Keller, CEO of TCS Healthcare. “We are excited to gain a new set of talented colleagues from DataSmart who will benefit from HCAP’s gainful jobs approach while we also gain technology that will help our clients identify and positively support members in their population who are at risk for both medical and social reasons.”