The eHealth sector hit the ground running in 2020. In the first two and a half weeks 15 eHealth transactions have been announced, and we expect it to easily eclipse January 2019’s deal volume of 16. It’s already matched last month’s total count of 15.
The headline deal belongs to Teladoc Health, Inc.‘s (NYSE: TDOC) acquisition of InTouch Health for $600 million, split into $150 million in cash and $450 million of Teladoc common stock. InTouch Health offers telehealth, cloud-based network, and virtual care solutions services for a broad array of healthcare environments. The company supports more than 3,600 care locations around the world, including many of the top 20 U.S. health systems. In 2019, InTouch Health reported revenue of $80 million.
This acquisition gives Teladoc a comprehensive virtual care platform that can service a wide range of conditions, from critical to chronic to non-emergency. Telehealth is on a steep rise, with 40% of hospitals surveyed planning to increase their budgets for telemedicine solutions, according to JPMorgan research. This deal is expected to close in the second quarter of 2020.
On January 13, R1 RCM Inc. (NASDAQ: RCM) announced it purchased SCI Solutions, Inc. for $190 million. SCI Solutions operates the industry’s largest EHR-agnostic care coordination and patient scheduling marketplace. Its platform supports more than 94,000 providers and 1,200 sites of care that comprise $225 billion of potential net patient revenue across the country. R1 RCM will gain SCI’s patient engagement platform and an opportunity to offer its client digital tools that support both the frontend and backend of healthcare operations. The transaction is expected to close this quarter.
In fact, patient engagement solutions were the focus of five deals this month, according to our Deal Search Online database. Healthgrades, a portfolio company of Vestar Capital Partners, acquired Evariant, which helps providers to optimize growth through its Patients for Life Platform, delivering smarter patient acquisition and retention with patient engagement. Atrium, a Nestle Health Science company, merged with LivingMatrix, a cloud-based medicine platform that helps clinicians to evaluate patients and create personalized, actionable care plans tracking their progress. Neither of these transactions had disclosed terms.