Rawlings Corporation being sold to New York investment firm

UPDATED 11:20 A.M. -- A year after the passing of Rawlings Corporation CEO George Rawlings, The Oldham Era has confirmed the company, located on New Eden Parkway in La Grange, is being sold to New Mountain Capital.

The company will remain in La Grange, The Oldham Era has confirmed.

Rawlings, which specializes in data mining and claims recovery of health insurance and is one of the largest employers in the county, opened its doors in La Grange in 2007.

New Mountain is "a leading growth-oriented investment firm with approximately $50 billion in assets under management," according to a joint news release this morning announcing the sale.

"New Mountain is partnering with the Rawlings management team to support the next phase of growth for the company, including investments in artificial intelligence, product development, and expansion into new markets and capabilities," the press release said.

Rawlings is a leading technology-enabled payment integrity provider that delivers significant savings for its health insurance clients by identifying the correct third parties responsible for paying medical claims across its subrogation, workers' compensation, coordination of benefits, and drug claim payment integrity offerings, the news release said.

The company achieves "meaningful financial outcomes for its clients through its differentiated subject matter expertise, longstanding commitment to service and quality, and proprietary technology platforms."

Since its founding in 1977, the Rawlings has been partnering with health insurance clients for more than 45 years to lower the cost of healthcare. Rawlings created the first-ever subrogation outsourcing solution and soon after launched coordination of benefits and pharmaceutical claims recovery offerings that form the foundation of the company's capabilities today. Today, Rawlings serves more than 30 health insurance companies and delivers more than $1.5 billion in annual savings for its clients, according to the news release.

New Mountain officials said they are excited to partner with Rawlings.

"We have long admired the Rawlings business and the company's reputation for outstanding client outcomes," said Matt Holt, managing director and president, private equity at New Mountain. "New Mountain's deep experience in healthcare technology and payer services, as well as its philosophy of building great businesses, will support Rawlings as the company accelerates its strategic vision through investing in cutting-edge technology and AI capabilities, while building on its strong market reputation and client relationships."

"Rising healthcare costs and increasing payment complexity create a significant need for firms that can help health insurance companies navigate these market dynamics. Rawlings' deep subject matter expertise, augmented by its proprietary technology platform, positions the company as a leading player in the coverage analytics space that delivers hard dollar savings for its clients," added Brian Murphy, managing director at New Mountain. "We are excited to partner with the entire Rawlings organization to support the next phase of growth for the company."

When it arrived in La Grange, Rawlings had 550 employees and moved from Waterfront Towers in downtown Louisville to Oldham Reserve for a more "serene" work environment, company officials told the Era at that time. The $20 million building featured new amenities, an in-house coffee shop, a workout facility, a bathroom with showers, flat screen televisions and a cafeteria and had room for nearly 900 employees.

Since then, Rawlings has grown and expanded in La Grange to a 230,000-square-foot campus that employs more than 1,500 people.

Rawlings and his company made substantial investments in La Grange and the county at large since that move in 2007. In January 2019, Rawlings donated $2 million to Baptist Health La Grange and the Baptist Health Foundation for the renovation of the hospital's emergency department, the largest donation the hospital received up to that date.

Four years earlier, he made a $1 million "surprise" Christmas donation to Baptist Health La Grange that led to the creation of a state-of-the-art women's center at the hospital. And in 2013, he purchased the former Southern States building in La Grange for $650,000, which would ultimately become CityPlace. From the time of its opening in 2015, CityPlace has featured corporate and community events, chess tournaments, art shows, film premieres and more.

New Mountain Capital has additional offices in Santa Monica, California; London, Japan and India.