Private Equity Bets Big on Pediatric Billing in Niche Healthcare Play

NASHVILLE, TN & WINOOSKI, VT – January 14, 2026 – In a move that underscores a growing private equity appetite for specialized healthcare services, Nashville-based Lead Capital Partners (LCP) has announced a significant platform investment in PedsOne, a leading provider of revenue cycle management (RCM) exclusively for independent pediatric practices. The deal, which also includes an investment from Harbert Credit Solutions, marks the third platform investment from LCP’s Fund II and injects substantial capital into the Vermont-based RCM firm.

The partnership aims to bolster PedsOne's capabilities, allowing it to scale its services and technology. While financial terms were not disclosed, the investment highlights a strategic trend: investors are increasingly targeting niche companies that solve critical, complex operational problems for healthcare providers, particularly those in the lower middle market.

A Strategic Bet on a Healthcare Niche

Lead Capital Partners, a firm with a 40-year history of investing in healthcare services, has built its strategy on identifying and partnering with founder-led companies that hold strong positions in specialized markets. The investment in PedsOne is a clear extension of this thesis. Rather than targeting broad healthcare IT systems or large hospital networks, LCP is focusing on the intricate and often-overlooked financial backbone of independent medical practices.

Revenue cycle management—the complex process of managing claims, payments, and revenue generation—is a universal challenge in healthcare. However, the pediatric sector presents a unique set of hurdles that generalist RCM providers often fail to address effectively. This specialization makes PedsOne a particularly attractive asset.

“Pediatricians face a wide array of challenges in today’s evolving healthcare market and PedsOne has established itself as a vital partner to its clients,” said Carl Grote, Director at Lead Capital Partners, in a statement. “We look forward to supporting Tim and his team as they continue to deliver exceptional results for pediatric practices nationwide.”

This sentiment points to an investment strategy focused on necessity and expertise. As independent practices grapple with shrinking margins and increasing administrative complexity, outsourcing RCM to a specialist becomes less of a luxury and more of a core strategy for survival and growth. The co-investment from Harbert Credit Solutions, a firm specializing in flexible financing for lower middle-market companies, provides the leveraged financial structure common in such private equity-led buyouts, enabling LCP to maximize its equity position while providing PedsOne with ample growth capital.

Alleviating the Burden on Independent Pediatricians

The significance of this investment extends far beyond financial markets, promising a tangible impact on the daily operations of independent pediatric practices. These small businesses are the frontline of healthcare for millions of children but are increasingly strained by administrative duties that detract from patient care.

The challenges are distinct to pediatrics. Billing involves complex coding for vaccination schedules, developmental screenings, and age-specific procedures. Billers must navigate a labyrinth of state-specific Medicaid rules, manage family billing for multiple children, and handle high volumes of lower-value claims. This complexity leads to a higher risk of errors, claim denials, and delayed payments, all of which threaten the financial viability of a practice.

PedsOne was founded in 2011 to address this specific pain point. By employing a team of certified coders and billing professionals who work exclusively in pediatrics, the company offers a level of expertise that larger, more generalized RCM firms cannot match. This specialized focus is central to its value proposition.

“Our mission has always been to ensure independent pediatricians are paid fairly and accurately, so they can focus on providing essential healthcare to the children and families they serve,” stated Tim Rushford, Founder and CEO of PedsOne. Rushford, who will continue to lead the company along with his existing management team, emphasized the cultural alignment with LCP. “In Lead Capital Partners, we found a partner that...understands the critical importance of pediatric-specific billing support and values our high-touch, individualized commitment to service quality and results.”

For pediatricians, the promise of this partnership is a more efficient and resilient practice. By offloading the RCM burden to a dedicated expert, doctors and their staff can reclaim time and resources to focus on clinical outcomes, patient engagement, and practice development.

Fueling Growth with Technology and Talent

The partnership's stated goal is to “invest further in our people and technology,” signaling a new phase of growth and innovation for PedsOne. This capital injection will enable the company to enhance its technological infrastructure and expand its team of specialists, solidifying its leadership in a competitive niche market populated by other specialized providers like Practolytics and Office Practicum.

Technological advancement is crucial. PedsOne already utilizes data-driven tools, including the PCC Partner system and a proprietary dashboard, to provide clients with key performance indicators (KPIs) such as Days in Accounts Receivable (A/R) and denial rates. The new funding will likely accelerate the integration of more advanced technologies, potentially including artificial intelligence and machine learning, to further automate claim processing, predict and prevent denials, and optimize the entire revenue cycle. This translates into faster payments and improved cash flow for its clients.

Investment in “people” is equally important. The quality of an RCM service hinges on the expertise of its staff. By expanding its team of experienced pediatric billing professionals, PedsOne can enhance its high-touch service model, providing more personalized support to a larger number of practices across the country. This commitment to maintaining a deep pool of specialized talent is a key differentiator in an industry where expertise directly correlates with financial results.

With the backing of LCP, PedsOne is now positioned to not only improve its existing offerings but also potentially expand into adjacent services, such as more comprehensive practice management consulting, credentialing services, and enhanced patient-facing payment tools. The decision to keep the founding leadership team in place ensures that this growth will be guided by the same vision and client-centric culture that established PedsOne as a trusted partner for pediatricians nationwide.