Health Catalyst (NASDAQ: HCAT) has been an active buyer this year. In July, the digital health firm purchased healthfinch, Inc. for $40 million to build its population health portfolio and electronic health record platform, and now it is boosting its revenue cycle management services. Health Catalyst announced last week it is acquiring Vitalware, LLC, which provides revenue workflow optimization and analytics SaaS technology solutions to healthcare organizations.
The terms of the deal include $120 million upfront and an additional $30 million could be paid as a potential earnout. The upfront payment will be comprised of a mix of cash and 1,487,210 shares valued at $33.62.
Vitalware offers Health Catalyst a strategic anchor technology in the revenue space. Vitalware’s solutions support all major EMRs and act as a key integration point for health systems with multiple EMRs. Vitalware’s flagship offering is a “Best in KLAS” chargemaster management solution that delivers results for the complex regulatory and compliance functions needed by all healthcare provider systems. Additionally, Vitalware’s suite of products helps health systems capture lost revenue and support compliance with expanding pricing transparency regulation. The company has a client base of over 1,000 hospitals.
In conjunction with the deal, Health Catalyst also announced a long-term strategic partnership with Northwell Health, New York State’s largest healthcare provider. Health Catalyst’s DOS platform will be deployed across Northwell Health to help turn raw data into actionable insights to drive clinical, financial, and operational improvements. The health system will also gain access to Health Catalyst’s newer COVID-19-focused technologies, including a registry, staff- and patient-tracker, and capacity planning tool.
