Digital health deals are on track to surpass 2016’s record 157 transactions. Through mid-October, 139 deals have been announced in this sector, targeting companies specializing in revenue cycle management, telemedicine and electronic medical records (EMRs). Just four companies have made more than one acquisition this year, indicating there are more buyers getting into digital health than leaving it.
Among the four serial acquirers this year are Allscripts (NASDAQ: MDRX), Azalea Health, NextGen Healthcare Information (NASDAQ: QSII) and contract research organization PRA Health Sciences (NASDAQ: PRAH).
Azalea Health is the only the privately held digital health company to announce two acquisitions in 2017. The Atlanta-based company’s portfolio includes integrated EMR, practice management, telehealth, revenue cycle performance and professional consulting services.
In April, Azalea acquired LeonardoMD, which provides web-based medical practice management software and EMRs to thousands of physicians, medical billing services and medical providers. With that transaction, the company claimed to service thousands of healthcare providers across nearly all 50 states. It also noted that it was approaching $1 billion in healthcare charges processed through its platforms annually.
In mid-October, the company announced its merger with Prognosis Innovation Healthcare, a privately held Houston-based company that specializes in EMRs for rural and community hospitals, a market of approximately 1,300 critical access hospitals.
With this second acquisition, Azalea Health now services thousands of ambulatory and hospital-based healthcare providers across mroe than 30 medical specialties. It also claims to manage “billions of dollars a year in healthcare charges processed through its platform.” With that rate of growth, we expect Allscripts or another EMR company to check out Azalea Health’s claims.
