MultiPlan Corporation (NYSE: MPLN), a leading value-add provider of data analytics and technology-enabled end-to-end cost management solutions to the U.S. healthcare industry, is wasting no time in expanding. If the name rings a bell, it’s because MultiPlan just went public in July 2020 in an $11 billion reverse merger with Churchill Capital Corp III, a special purpose acquisition company (SPAC). It was one of the biggest deals of 2020, and one of many in healthcare involving a reverse merger with a SPAC. Since MultiPlan went public, the company has announced two transactions under its “Enhance-Extend-Expand strategy,” including the most recent one for Discovery Health Partners, valued at $155 million.
Discovery Health Partners provides actionable analytic insights and technology-powered solutions to help healthcare payers improve payment integrity, increase revenue optimization, and maximize efficiencies. The company serves about 80 health plans across the United States, including nine of the 10 largest U.S. health plans. It was a portfolio company of Carrick Capital Partners, which acquired the company in August 2018 for an undisclosed sum.
Discovery will increase the MultiPlan’s payment integrity footprint and further diversify its revenues. It also delivers on two chief targets of the Extend strategy component: in-network claims and the government market. The transaction is expected to be completed by the end of Q1 2021.
MultiPlan’s first deal after it went public was for HST at a price of $140 million back in November. HST’s platform uses sophisticated data analytics and tools to engage members and providers on both the front and back end of healthcare, enhancing collaboration and improving the management of medical costs for all parties to a healthcare claim.
The HST acquisition helps MultiPlan to increase the value of its services to healthcare payors by adding complementary services to help them better manage the cost of care and improve their competitiveness.
