PE-Backed Coronis Health Acquires RCM Provider
In the eHealth sector, acquisitions for revenue cycle management (RCM) firms are usually headline-worthy deals, such as Frazier Healthcare Partners’ $250 million purchase of MedData, Inc. from Mednax (NYSE: MD) back in October 2019. RCM companies tend to service hospitals, large health systems and healthcare providers. MedData, for instance, serves more than 10,000 physicians in a network of more than 3,000 facilities nationwide. However, Coronis Health focuses on something more niche. A portfolio company of 424 Capital (formerly known as Brook Venture Partners), Coronis Health announced last week it acquired Reliabill, LLC, an RCM provider to the behavioral health market, focusing... Read More » DXC Technology Divests State & Local HHS Business
When Mike Salvino took over as CEO of DXC Technology (NYSE: DXC) in September 2019, he announced during his first earnings call that the company was planning strategic alternatives, including the possible divesture of three of its non-core assets, which made up roughly 25% of the company’s revenue. One of those segments included its U.S. state and local health and human services business (HHS business), which DXC managed to divest last week to Veritas Capital Management LLC for $5 billion in cash. DXC’s HHS business is an end-to-end provider of technology solutions critical to the administration and operations of health programs. The business facilitates performance... Read More »
NaviHealth Deal Focuses on Seniors
It’s been a few years, four to be exact, since NaviHealth announced an acquisition. The silence was broken in late February, when it acquired Innovative Healthcare Delivery (IHD). The deal is part of NaviHealth’s mission to extend non-clinical services into seniors homes. Financial terms were not disclosed. IHD, based in Henderson, Nevada, specializes in identifying and addressing social determinants of health to improve quality of life and clinical outcomes for patients. It delivers a high-touch, patient-centric and non-clinical approach that is paired with proprietary workflow and patient engagement technology to address barriers and improve efficiences to get the right care... Read More »Citadel Group Goes International
The Citadel Group Limited (ASX: CGL), an Australia-based business services company, announced this month it was acquiring Wellbeing Software for roughly $134 million, or 6.2x the group’s 2019 revenue of $21.6 million. Elysian Capital is selling the eHealth firm, which provides radiology and maternity software that manage patient workflow and data, as well as electronic health record management and data management solutions. The company’s platform, which includes Healthcare Software Systems, Euroking and Apollo Medical Systems, is used by more than 80% of NHS organizations. This merger will support Wellbeing Software’s international market expansion and compliment... Read More »
Hot Healthcare Sectors for Investment, Growth & Consolidation in 2020
Every year, starting in November, the crystal balls come out and the prognostications begin. What will the new year bring? Who or what will make out better and who or what will not? We talked with Gary Herschman, a member of Epstein Becker Green’s Healthcare and Life Sciences practice, about the healthcare sectors he and his firm are watching in 2020. Here are their predictions for 2020. Health Care M&A: What do you see as the biggest themes in the healthcare industry this year? There are a lot of moving parts, from the discovery of new drugs to the shifting attention to post-acute care. Gary Herschman: We see three key “drivers” of health industry transformation that are already... Read More »