Frazier Healthcare Partners not ‘chasing vanity tech’ with $490M MatrixCare acquisition McKnight’s Senior Living

The $490 million transaction by which Seattle-based private equity firm Frazier Healthcare Partners will acquire software company MatrixCare from ResMed “is a reminder that within post‑acute and senior care, the [electronic health record] has become part of the basic wiring of the organization, not nice‑to‑have software,” Michael Gray, the vice president of information technology and compliance officer for Cleveland-based senior living and care provider Eliza Jennings, told the McKnight’s Business Daily Wednesday.

The acquisition, announced Tuesday after the close of business on the East Coast, is expected to close in the third quarter. Until then, MatrixCare will continue to operate as part of ResMed.

“When a platform sits where documentation, reimbursement and compliance meet, it has the potential to attract some serious capital,” Gray said. “Private equity isn’t chasing vanity tech with this deal; they are buying the systems we literally run our businesses on.”

The agreement includes MatrixCare and related software offerings historically sold under the MatrixCare brand, including Healthcare First, Citus and home health and hospice solutions. It does not include ResMed’s other software businesses, Brightree in the US — which serves home health, hospice, home infusion, home medical equipment and pharmacy businesses — and MEDIFOX DAN in Germany. 

Owned since 2019

ResMed acquired MatrixCare in 2019 for $750 million, having announced the deal the previous year. 

ResMed Chairman and CEO Mick Farrell said in a statement Tuesday that the divestiture now aligns with the company’s “2030 strategy, with a focused approach to portfolio management.” The strategy’s targets are “high-growth, scalable opportunities in sleep health, breathing health and connected home-based healthcare.”

The company said the disposition was necessary to reallocate capital and resources due to “potential past inefficiencies or underperformance.” According to a filing Tuesday with the Securities and Exchange Commission, ResMed intends to use the net proceeds from the sale to Frazier to return capital to shareholders, including via an accelerated share repurchase program, and for general corporate purposes. 

“Based on preliminary financial results for the full fiscal year 2026, the MatrixCare business represented approximately $220 million of revenue and approximately $55 million of non-GAAP operating profit,” according to the filing.

“We’re confident that Frazier Healthcare is an excellent steward for our MatrixCare team members and solutions,” Farrell said.

‘Not just about MatrixCare’

MatrixCare serves more than 15,000 senior living communities, skilled nursing facilities and providers of home health and hospice care services. The company is a multi-year winner in the Best in KLAS awards, most recently this year.

“For providers, this isn’t just about MatrixCare. It’s a reminder that the tools our nurses, aides and therapists live in every day are now being shaped more and more by financial sponsors,” Eliza Jennings’ Gray said. “While this may result in more investment into the platform, it can also mean a faster pace of change, price increases and tighter contractual obligations. We need to treat EHR vendors as strategic partners, not utilities. Decisions made within these platforms directly impact care and reimbursement.”

Product innovation coming

Founded in 1991, Frazier Healthcare Partners focuses exclusively on the healthcare industry. 

Frazier General Partner Ryan Lucero said that the firm “has spent several years evaluating the post-acute care technology sector and believes MatrixCare has established itself as a leading platform serving skilled nursing, senior living, and home health and hospice providers.”

Frazier Principal Clarissa Berman said that the company plans “to invest aggressively in product innovation to help providers deliver better outcomes as the post-acute care landscape continues to evolve.”