Sunbound Buys Richter Healthcare Consultants, Lands $24M Series A Led by TTV Capital

Sunbound has acquired Richter Healthcare Consultants, combining its AI-powered revenue operating system for senior living with Richter's more than 25 years of experience serving post-acute and senior living operators. The transaction follows a $24 million Series A round led by TTV Capital, which brings Sunbound's total funding to $36 million.

Bling Capital, Fika Ventures, Live Oak Bank and Ziegler Linkage Fund participated in the round. Sunbound said it plans to use the capital to accelerate business growth and product development.

Richter provides outsourced revenue cycle management, accounting, Medicaid eligibility, reimbursement services, and clinical and financial consulting to skilled nursing, senior living, home health and hospice operators. According to Sunbound, the acquisition gives it additional expertise in skilled nursing, one of the more complex areas of post-acute billing.

Jennifer Richter, CPA, founder and CEO of Richter, will remain with the combined company in a new role focused on industry partnerships and product strategy.

Together, Sunbound and Richter are on track to process $3 billion in annualized payment volume. The combined platform is designed to manage the revenue cycle from admission through payment while pairing Sunbound's automation technology with Richter's financial, clinical and operational expertise.

Sunbound said its end-to-end revenue cycle management platform for Medicare, Medicaid and managed care helps identify potential denial risks before claims are submitted. The company reports a 99% claims collection rate and a 96% first-pass acceptance rate for operators using the platform.

Its Private Payments product digitizes family payments and automates payment operations, which the company said can save more than 40 hours per community each month. Its Admissions product can also verify payer coverage and assess a resident's ability to pay in approximately 30 seconds before a bed is committed.

Richter expands the platform with accounting and controller services, Medicaid eligibility, reimbursement and clinical consulting, audit and compliance support, and electronic health record implementation and optimization.

Existing customers of both companies are expected to experience no service interruptions, while Sunbound plans to gradually make the broader combined offering available across the two customer bases.

"Healthcare finance is incredibly complex, and most senior living and skilled nursing operators lack modern financial technology," Neil Kapur, partner at TTV Capital, said of the investment, pointing to what he described as the company's rapid growth and strong product-market fit.