As the healthcare market evolves, so does the need to manage the payment flows between managed care companies, providers and patients. That rising demand surely played a role in UnitedHealth Group, Inc.‘s (NYSE: UNH) acquisition of Equian LLC, an end-to-end healthcare payment firm. UnitedHealth paid approximately $3.2 billion, according to The Wall Street Journal, citing sources familiar with the matter.
Equian manages over $500 billion in claims data annually through its platform, assisting clients by avoiding, identifying, pricing, analyzing clinical codes, and ultimately recovering inaccurate transactions in healthcare, workers compensation, and property and casualty markets.
If the name Equian rings a bell, it’s because the PE firm New Mountain Capital purchased the company in 2015 from Great Point Partners for $225 million and merged it with Trover Solutions Inc. Within four years time, the value of the company grew by nearly $2.98 billion.
UnitedHealth Group will most likely merge Equian with Optum, its healthcare services division, and help Optum branch out beyond health care through Equian’s client base.
In May, another healthcare payment firm deal made some headlines. JPMorgan Chase & Co. (NYSE: JPM) bought Instamed for approximatelly $500 million, according to CNBC sources. The target company provides a digital platform that connects healthcare consumers, providers, and payers and automates medical billing as well as the delivery of healthcare information and payments. Instamed processed $94 billion in transactions in 2018.
This acquisition is JPMorgan’s first move into the $3.5 trillion healthcare market and will expand the bank’s suite of payment services designed specifically for healthcare consumers, providers, and payers. JPMorgan will integrate Instamed within its wholesale payments division and offer the platform to all of its clients. It’s clear JPMorgan hopes to be one of the major players in the industry as the market shifts toward cloud-based platforms and automation.
