Last Month in Digital Health M&A: July 2019
During the last month, we have caught the following digital health M&A deals…
Carenet Health acquired engagement and telehealth solution subsidiary of Citra Health Solutions Carenet Health is a leading source of healthcare engagement, clinical support, advocacy and 24/7 telehealth solutions. The transaction, announced on July 1st, makes the company one of the largest telehealth providers in the nation, working with the country’s premier health plans, providers and pharmacy benefit managers. It also further extends and strengthens Carenet’s presence in the provider/health system market. Terms of the transaction were not disclosed. • read more.
Net Health to acquire rehab software provider Optima Healthcare Solutions. The combination of these two companies creates one industry leader serving multiple specialized clinical settings throughout the continuum of care ‐ from the hospital to the patient’s home and all points in between. Encompassing leading positions in rehab therapy, wound care, hospice care, employee health, and occupational medicine, Net Health will offer provider organizations best-in-class interoperability, analytics, and ease of use. Terms of the deal were not disclosed. • read more.
Provider of revenue cycle technology Waystar acquired Digitize.AI to automate prior authorization. Founded in 2017, Digitize.AI differs from competitive prior authorization solutions by leveraging AI to make smarter decisions. It automatically checks for new cases, submits them directly to payers via secure integrations, continually monitors payers for responses, and, once authorization is received, automatically submits to providers’ EHR systems. Digitize.AI’s platform includes real-time analytics and machine learning models that create valuable intelligence, allowing its customers to focus on patient care instead of administrative burdens. This past June, Waystar announced the acquisition of PARO, a charity screening predictive analytics solution, following a series of 2018 acquisitions including that of predictive analytics solution Connance and claims monitoring capabilities from UPMC’s Ovation. • read more.
Rhapsody, Corepoint merge to advance healthcare interoperability. The transaction will bring together two companies at the forefront of interoperability and create a dynamic combination of technology, talent, services, and trusted customer relationships to address the most complex healthcare interoperability challenges and initiatives — including FHIR, Cloud Transformation and National Data Exchange Networks. Both companies will continue to support and advance their respective solutions, while the combined entity will also devote its expanded resources to addressing the growing need for interoperability among regional, national and international healthcare providers and vendors. Rhapsody and Corepoint serve well over 1000 customers in the US and around the world, with minimal overlap. • read more.
OSF HealthCare and Little Company of Mary Hospital and Health Care Centers to merge. The two organizations have entered into a period of exclusive negotiations, anticipating a full merger. They will spend the next several months finalizing agreements and seeking the necessary regulatory and canonical approvals… In addition to adding advanced technologies and innovative capabilities, the agreement would allow OSF HealthCare and Little Company of Mary to share services, develop and expand academic partnerships, and create strategies to meet the unique needs of various populations. The merger is expected to take place in early 2020. • read more.
Philips acquires Boston-based Medumo to help hospitals communicate with patients. Medumo uses a combination of email and SMS to deliver instructions to patients, on behalf of its hospital customers. The company, which has fewer than 30 employees, fits into the so-called “patient engagement” trend, which involves providing tools for medical providers to stay in touch with their patients outside of the four walls of the doctor’s office. For Philips, the acquisition could present an opportunity to build a service for its pre-existing health system customers. Medumo’s partners include Boston Children’s Hospital and Harvard hospital Brigham Health, among others. Financial terms of the deal were not disclosed. • read more.
Provider of healthcare interoperability solutions ELLKAY acquires X-Link. With the strategic acquisition, ELLKAY expands its healthcare footprint and empowers providers with an easier, more cost-effective way to achieve Promoting Interoperability (PI) objectives and quality measures. It also strengthens ELLKAY’s core mission of extending solutions that provide true interoperability and access to patient data at the point of care. Financial terms of the deal were not disclosed. • read more.
D2 Consulting acquires patient engagement company WorkUp. The life sciences consulting firm D2 Consulting aims to use WorkUp’s technology to bring innovative solutions to the market as well as expand its existing technology solutions for manufacturers, specialty pharmacies, HUBs, payers, pharmacy benefit managers, and integrated delivery networks. The WorkUp solution was originally developed to support high maintenance patients, such as individuals with cancer, liver disease or blood disorders, among others. It is described as easy to integrate, implement and operate for proven user experiences and transparent, data-driven outcomes. The acquisition will give D2 Consulting clients demonstrably higher program enrollment and engagement rates. Financial terms of the deal were not disclosed. • read more.