Ensemble Health Pursues $13 Billion Exit Strategy Through Dual-Track Sale or IPO Process

Healthcare Tech Firm Eyes Major 2026 Exit

Ensemble Health, a prominent healthcare revenue management company, is reportedly pursuing a potential $13 billion exit through either a sale or initial public offering in 2026, according to sources familiar with the matter. The company, which specializes in using artificial intelligence to help hospitals improve revenue collection, has engaged financial advisors to explore both options simultaneously in what industry observers describe as a strategic move to maximize valuation.

Healthcare Tech Firm Eyes Major 2026 Exit
Dual-Track Approach with Banking Giants
Private Equity Backing and Financial Performance
Previous IPO Attempt and Market Context
AI-Driven Healthcare Revenue Management Boom
Broader AI Healthcare Investment Trend

Dual-Track Approach with Banking Giants

Sources indicate that Ensemble Health has tapped JPMorgan to pursue a potential sale while simultaneously working with Goldman Sachs to prepare for a possible IPO. This dual-track approach, according to reports, has become increasingly common among healthcare companies seeking exits in volatile market conditions. The strategy reportedly allows companies to maintain flexibility and create competitive tension that can potentially drive up valuation.

Five people with knowledge of the situation told Business Insider that the sale process is expected to begin in the first quarter of 2026, with the company aiming for a valuation of approximately $13 billion in either scenario. This represents an increase from earlier reports in May, when the Financial Times indicated the company was considering a sale that could value it up to $12 billion.

Private Equity Backing and Financial Performance

Ensemble Health is primarily owned by private equity firms Warburg Pincus and Berkshire Partners, which acquired a majority stake in the company from Golden Gate Capital in 2022. That transaction reportedly valued Ensemble at over $5 billion, meaning the current targeted valuation would represent significant growth in just a few years.

According to sources familiar with the company‘s financials, Ensemble is now generating approximately $700 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). This strong financial performance, analysts suggest, is driving investor confidence in the company’s ability to command a premium valuation.

Previous IPO Attempt and Market Context

This isn’t Ensemble Health’s first attempt at going public. The company previously filed for an IPO in 2021 but withdrew the offering shortly before shares were scheduled to price, citing adverse market conditions. The current renewed effort comes amid a mixed landscape for healthcare IPOs, where private equity-backed companies appear to be having more success than venture-backed counterparts.

While venture-backed health tech companies Hinge Health and Omada Health made successful public market debuts earlier this year, no additional VC-backed healthcare startups have followed their path since then, according to market observers. The report states that regulatory uncertainties and higher standards for IPO candidates have created challenges for many healthcare startups seeking public market exits.

AI-Driven Healthcare Revenue Management Boom

Ensemble Health’s potential $13 billion valuation comes amid growing investor enthusiasm for AI applications in healthcare administration. The company, founded in 2014, sells software that uses artificial intelligence and analytics tools to help hospitals reduce claim denials and accelerate payment collections.

Industry analysts suggest that healthcare’s ongoing labor crisis and declining reimbursements have created significant demand for AI-powered solutions that can streamline back-office operations. This trend has triggered billions of dollars in revenue cycle management transactions throughout the healthcare sector over the past year.

Recent major deals in the space include Waystar’s $1.25 billion acquisition of Iodine Software, TowerBrook and CD&R’s $8.9 billion acquisition of R1 RCM in November 2024, and New Mountain Capital’s revenue-cycle consolidation valued at $6 billion in May. The sector’s momentum, according to market watchers, reflects growing recognition that AI technologies can deliver substantial efficiency improvements in healthcare administration.

Broader AI Healthcare Investment Trend

The enthusiasm for Ensemble Health’s potential exit mirrors broader investor interest in AI-driven healthcare companies. Several AI healthcare startups have achieved unicorn status this year, with Abridge reaching a $5.3 billion valuation, Ambience crossing the $1 billion mark, and OpenEvidence hitting a $6 billion valuation in its most recent funding round.

These companies, analysts suggest, are benefiting from increased investor recognition that AI can address significant pain points in healthcare administration, particularly as traditional healthcare technology companies like Epic expand into AI-powered solutions.

JPMorgan and Goldman Sachs declined to comment on the reports, and Ensemble Health did not respond to requests for comment, according to sources. The coming months will reveal whether the company’s dual-track strategy will result in one of the largest healthcare technology exits of 2026.