WellSky announced Thursday that it has completed its acquisition of care coordination software company CarePort Health.
Under terms of the deal — first announced in October — WellSky purchased CarePort from Allscripts Healthcare Solutions (Nasdaq: MDRX) for a price tag of $1.35 billion. Allscripts is a health care information technology provider.
CarePort’s platform helps health systems and hospitals connect with post-acute care providers, including home health agencies.
“We take what is primarily a manual process with nurses and discharge planners, calling around trying to figure out if a provider can take on a patient based on their needs … and we make that into an electronic process,” Lissy Hu, CEO of CarePort, told Home Health Care News.
The Boston-based company currently serves 1,000 hospitals and health systems, as well as 110,000 post-acute provider locations.
Over the years, Hu has seen an increase in the need for home-based care services. That need has only accelerated during the public health emergency.
WellSky — a company that serves more than 15,000 client sites internationally — brings a strong network of home-based care services to the table.
“I think over the next couple years, even as we look post-COVID, we are going to see a lot more patients needing these home-based services,” Hu said. “WellSky delivers home-based care services to about a quarter of home health patients. They have a really robust community-based and social determinants of health network. Those are all the areas that we see post-hospital care going. That’s one of the reasons why the alignment was so natural.”
Additionally, the deal will give CarePort the ability to add further scale. Besides giving CarePort access to a greater referral network, the sale allows the company to grow its team.
Over the next six to 12 months, CarePort will be looking to hire roughly 40 to 50 new employees, according to Hu.
CarePort currently has about 200 employees.
“WellSky is going to be making an investment in CarePort,” Hu said. “They’ve always had a really strong reputation for investing in R&D and innovation in technology. We’re really excited about the commitment that WellSky made, not only to our customers and their benefit, but to our team as well.”
For CarePort, the COVID-19 emergency has only underscored the necessity of the services the company provides.
Hu noted that, prior to the public health emergency, liaisons from home health agencies or other post-acute care providers were able to enter the hospital and screen patients. This has changed drastically.
“As we shifted to hospitals being really restricted to all but the most essential workers, … the need to be able to coordinate this care electronically is even more important,” she said. “It’s even more important to make sure that the places you’re sending patients and the services you’re matching them up with get delivered.”
Ultimately, Hu believes companies like CarePort will play a key role in ensuring the delivery of care.
“We can’t just be satisfied that the patient who was supposed to get home health services actually had a visit,” she said. “The standard with home health is that the first visit occurs within the first 24 to 48 hours of discharge. Having technology that brings together hospitals and post-acute care providers makes sure that those transitions are efficient and high-quality.”
The combination of Teladoc Health and Livongo creates a
global leader in consumer-centered virtual care. The combined company is
positioned to execute quantified opportunities to drive revenue synergies of
$100 million by the end of the second year following the close, reaching $500
million on a run-rate basis by 2025.
Price: $18.5B in value based on each share of Livongo
will be exchanged for 0.5920x shares of Teladoc Health plus cash consideration
of $11.33 for each Livongo share.
Siemens Healthineers Acquires Varian Medical
On August 2nd, Siemens Healthineers acquired
Varian Medical for $16.4B, with the deal expected to close in 2021. Varian is a
global specialist in the field of cancer care, providing solutions especially
in radiation oncology and related software, including technologies such as
artificial intelligence, machine learning and data analysis. In fiscal year 2019,
the company generated $3.2 billion in revenues with an adjusted operating
margin of about 17%. The company currently has about 10,000 employees
worldwide.
Price: $16.4 billion in an all-cash transaction.
Gainwell to Acquire HMS for $3.4B in Cash
Veritas Capital (“Veritas”)-backed Gainwell Technologies (“Gainwell”),
a leading provider of solutions that are vital to the administration and
operations of health and human services programs, today announced that they
have entered into a definitive agreement whereby Gainwell will acquire HMS, a technology, analytics and engagement
solutions provider helping organizations reduce costs and improve health
outcomes.
Price: $3.4 billion in cash.
Philips Acquires Remote Cardiac Monitoring BioTelemetry for $2.8B
Philips acquires BioTelemetry, a U.S. provider of remote
cardiac diagnostics and monitoring for $72.00 per share for an implied
enterprise value of $2.8 billion (approx. EUR 2.3 billion). With $439M in
revenue in 2019, BioTelemetry annually monitors over 1 million cardiac patients
remotely; its portfolio includes wearable heart monitors, AI-based data
analytics, and services.
Price: $2.8B ($72 per share), to be paid in cash upon
completion.
Hims & Hers Merges with Oaktree Acquisition Corp to Go Public on NYSE
Telehealth company Hims & Hers and Oaktree Acquisition Corp., a special purpose acquisition company (SPAC) merge to go public on the New York Stock Exchange (NYSE) under the symbol “HIMS.” The merger will enable further investment in growth and new product categories that will accelerate Hims & Hers’ plan to become the digital front door to the healthcare system
Price: The business combination values the combined
company at an enterprise value of approximately $1.6 billion and is expected to
deliver up to $280 million of cash to the combined company through the
contribution of up to $205 million of cash.
SPAC Merges with 2 Telehealth Companies to Form Public
Digital Health Company in $1.35B Deal
Blank check acquisition company GigCapital2 agreed to merge with Cloudbreak Health, LLC, a unified telemedicine and video medical interpretation solutions provider, and UpHealth Holdings, Inc., one of the largest national and international digital healthcare providers to form a combined digital health company.
Price: The merger deal is worth $1.35 billion, including
debt.
WellSky Acquires CarePort Health from Allscripts for
$1.35B
WellSky, global health, and community care technology company, announced today that it has entered into a definitive agreement with Allscripts to acquireCarePort Health (“CarePort”), a Boston, MA-based care coordination software company that connects acute and post-acute providers and payers.
Price: $1.35 billion represents a multiple of greater
than 13 times CarePort’s revenue over the trailing 12 months, and approximately
21 times CarePort’s non-GAAP Adjusted EBITDA over the trailing 12 months.
Waystar Acquires Medicare RCM Company eSolutions
On September 13th, revenue cycle management
provider Waystar acquires eSolutions, a provider of Medicare and Multi-Payer revenue
cycle management, workflow automation, and data analytics tools. The
acquisition creates the first unified healthcare payments platform with both
commercial and government payer connectivity, resulting in greater value for
providers.
Radiology Partners (RP), a radiology practice in the U.S., announced a definitive agreement to acquire MEDNAX Radiology Solutions, a division of MEDNAX, Inc. for an enterprise value of approximately $885 million. The acquisition is expected to add more than 800 radiologists to RP’s existing practice of 1,600 radiologists. MEDNAX Radiology Solutions consists of more than 300 onsite radiologists, who primarily serve patients in Connecticut, Florida, Nevada, Tennessee, and Texas, and more than 500 teleradiologists, who serve patients in all 50 states.
Price: $885M
PointClickCare Acquires Collective Medical
PointClickCare Technologies, a leader in senior care technology with a network of more than 21,000 skilled nursing facilities, senior living communities, and home health agencies, today announced its intent to acquireCollective Medical, a Salt Lake City, a UT-based leading network-enabled platform for real-time cross-continuum care coordination for $650M. Together, PointClickCare and Collective Medical will provide diverse care teams across the continuum of acute, ambulatory, and post-acute care with point-of-care access to deep, real-time patient insights at any stage of a patient’s healthcare journey, enabling better decision making and improved clinical outcomes at a lower cost.
Price: $650M
Teladoc Health Acquires Virtual Care Platform InTouch
Health
Teladoc Health acquires InTouch Health, the leading provider of enterprise telehealth solutions for hospitals and health systems for $600M. The acquisition establishes Teladoc Health as the only virtual care provider covering the full range of acuity – from critical to chronic to everyday care – through a single solution across all sites of care including home, pharmacy, retail, physician office, ambulance, and more.
Price: $600M consisting of approximately $150 million
in cash and $450 million of Teladoc Health common stock.
AMN Healthcare Acquires VRI Provider Stratus Video
AMN Healthcare Services, Inc. acquires Stratus Video, a leading provider of video remote language interpretation services for the healthcare industry. The acquisition will help AMN Healthcare expand in the virtual workforce, patient care arena, and quality medical interpretation services delivered through a secure communications platform.
Price: $475M
CarepathRx Acquires Pharmacy Operations of Chartwell from
UPMC
CarepathRx, a leader in pharmacy and medication management
solutions for vulnerable and chronically ill patients, announced today a
partnership with UPMC’s Chartwell subsidiary that will expand patient access to
innovative specialty pharmacy and home infusion services. Under the $400M
landmark agreement, CarepathRx will acquire the
management services organization responsible for the operational and strategic
management of Chartwell while UPMC becomes a strategic investor in CarepathRx.
Price: $400M
Cerner to Acquire Health Division of Kantar for $375M in
Cash
Cerner announces it will acquire Kantar Health, a leading
data, analytics, and real-world evidence and commercial research consultancy
serving the life science and health care industry.
This acquisition is expected to allow Cerner’s Learning
Health Network client consortium and health systems with more opportunities to
directly engage with life sciences for funded research studies. The acquisition
is expected to close during the first half of 2021.
Price: $375M
Cerner Sells Off Parts of Healthcare IT Business in
Germany and Spain
Cerner sells off parts of healthcare IT business in Germany and Spain to Germany company CompuGroup Medical, reflecting the company-wide transformation focused on improved operating efficiencies, enhanced client focus, a refined growth strategy, and a sharpened approach to portfolio management.
Price: EUR 225 million ($247.5M USD)
CompuGroup Medical Acquires eMDs for $240M
CompuGroup Medical (CGM) acquires eMDs, Inc. (eMDs), a
leading provider of healthcare IT with a focus on doctors’ practices in the US,
reaching an attractive size in the biggest healthcare market worldwide. With
this acquisition, the US subsidiary of CGM significantly broadens its position
and will become the top 4 providers in the market for Ambulatory Information
Systems in the US.
Price: $240M (equal to approx. EUR 203 million)
Change Healthcare Buys Back Pharmacy Network
Change
Healthcarebuys
back pharmacy unit eRx Network
(“eRx”), a leading provider of comprehensive, innovative, and secure
data-driven solutions for pharmacies. eRx generated approximately $67M in
annual revenue for the twelve-month period ended February 29, 2020. The
transaction supports Change Healthcare’s commitment to focus on and invest in
core aspects of the business to fuel long-term growth and advance innovation.
Walmart acquires CareZone, a San Francisco, CA-based smartphone
service for managing chronic health conditions for reportedly $200M. By
working with a network of pharmacy partners, CareZone’s concierge services
assist consumers in getting their prescription medications organized and
delivered to their doorstep, making pharmacies more accessible to individuals
and families who may be homebound or reside in rural locations.
Verisk, a data
analytics provider, announced today that it has acquiredFranco Signor, a Medicare Secondary Payer
(MSP) service provider to America’s largest insurance carriers and employers.
As part of the acquisition, Franco Signor will become part of Verisk’s Claims
Partners business, a leading provider of MSP compliance and other analytic
claim services. Claims Partners and Franco Signor will be combining forces to
provide the single best resource for Medicare compliance.
Price: $160M
Rubicon Technology Partners Acquires Central Logic
Private equity firm Rubicon Technology Partners acquires
Central Logic, a provider of patient orchestration and tools to accelerate
access to care for healthcare organizations. Rubicon will be aggressively driving Central Logic’s
growth with additional cash investments into the business, with a focus
on product innovation, sales expansion, delivery and customer support, and
the pursuit of acquisition opportunities.
WellSky announced Tuesday it has entered into an agreement to acquire CarePort Health from Allscripts Healthcare Solutions (Nasdaq: MDRX), a health care information technology provider. The deal is for $1.35 billion, according to Allscripts.
WellSky is an international software and professional services company with clients that include home health providers, hospital systems, blood banks, labs, hospices, government agencies and human services organizations. The company is jointly owned by private equity firms TPG Capital and Leonard Green & Partners, which teamed up with WellSky this July.
Boston-based CarePort is a care coordination software company that connects health care providers and payers, an increasingly important function as Medicare Advantage enrollment continues to soar and as the U.S. health care system steadily shifts away from fee-for-service models.
Currently, CarePort serves 1,000 hospitals and health systems, plus 110,000 post-acute provider locations.
CarePort was an attractive acquisition target for WellSky because of the natural alignment between both organizations, Bill Miller, CEO of WellSky, told Home Health Care News in an email.
“WellSky is committed to investing in care coordination and interoperability solutions, and CarePort was the obvious choice — based on its superior technology, market leadership and national presence,” Miller said. “We’ve been impressed with CarePort’s proven track record as the leading post-acute care coordination platform in the U.S.”
CarePort’s $1.35 billion price tag represents more than 13 times the company’s revenue over the past 12 months. It’s also roughly 21 times CarePort’s non-GAAP adjusted EBITDA over the trailing 12 months
As part of the deal, CarePort’s customers and more than 200 employees will join WellSky.
“This agreement is another all-around win for Allscripts, as it unlocks significant value for our shareholders, enables us to increase our focus on our core business and brings our CarePort customers the benefit of continued investment under new and very strong ownership,” Rick Poulton, Allscripts president and CFO, said in the press release announcing the news.
For WellSky, the planned purchase of CarePort allows the company to better manage the acute care discharge process, as well as keep track of patients across post-acute care settings, including home health care.
Additionally, the deal will allow home health providers to streamline their referral management and intake processes, according to Miller.
“CarePort’s EHR-agnostic platform allows home health providers to effectively coordinate patient care through real-time collaboration with hospitals, health systems, ACOs, and other post-acute providers to close gaps in care and improve patient outcomes,” he said. “This collaboration has the potential to create a meaningful, measurable difference for patients, providers and payers across even more care settings.”
Overall, CarePort represents about 6% of Allscripts consolidated revenues. Allscripts reported Q2 2020 revenues of $406 million in July.
The sale is slated to close before the end of the year, subject to clearing customary regulatory hurdles. WellSky and CarePort will continue to operate independently prior to that time.
“Joining WellSky means that we can increase vital connections between acute, post-acute and community care providers to make a meaningful difference in the lives of more patients in more places,” Dr. Lissy Hu, CEO of CarePort, said in the press release.
WellSky’s plan to acquire CarePort is closely in line with leadership remarks following the news about Leonard Green & Partners. At the time, WellSky noted the new investment would help it expand current capabilities and service offerings, particularly when it comes to analytics, telehealth and payer relationships.
– Health technology leader WellSky has agreed to acquire
CarePort Health to power coordinated care transitions for acute and post-acute
care patients for $1.35B.
– By providing end-to-end visibility across the
continuum, WellSky and CarePort can improve outcomes, lower costs, and increase
patient satisfaction.
WellSky, a global health, and community care technology company, announced today that it has entered into a definitive agreement with Allscripts to acquireCarePort Health (“CarePort”), a Boston, MA-based care coordination software company that connects acute and post-acute providers and payers.
Financial Details
The agreed sale price of $1.35 billion represents a multiple
of greater than 13 times CarePort’s revenue over the trailing 12 months, and
approximately 21 times CarePort’s non-GAAP Adjusted EBITDA over the trailing 12
months. CarePort is included in Allscripts Data, Analytics and Care Coordination
reporting segment and represents approximately 6% of Allscripts consolidated
revenues. Reference should be made to the Allscripts quarterly earnings reports
and supplemental financial data for a reconciliation of non-GAAP Adjusted
EBITDA. William Blair and J.P. Morgan Securities, LLC acted as financial
advisors to Allscripts in connection with the sale of CarePort.
Acquisition Enhances Care Coordination Across Acute,
Post-Acute Continuum
As part of the acquisition, WellSky and CarePort will facilitate effective patient care transitions across the continuum — driving better outcomes for patients, providers, and payers. With the addition of CarePort, WellSky is uniquely positioned to manage the acute care discharge process, track patients across post-acute care settings, apply patient and population-level analytics, and support EMR-based care protocols.
CarePort’s EHR-agnostic suite of solutions connects the
discharge process with post-discharge care coordination — allowing providers
and payers to track and manage patients throughout their care journey. By
providing end-to-end visibility across the continuum, WellSky and CarePort can
improve outcomes, lower costs, and increase patient satisfaction.
“As part of the WellSky team, we will be able to accelerate our mission to connect providers across the continuum. Both of our organizations are aligned in our dedication to proactively bridging gaps in care. Together, we have the technology, analytics, and network to ensure that patients receive seamless care,” said Dr. Lissy Hu, CEO of CarePort. “Joining WellSky means that we can increase vital connections between acute, post-acute, and community care providers to make a meaningful difference in the lives of more patients in more places.”
With WellSky’s deep experience in post-acute care and
CarePort’s suite of care coordination solutions, this combination is a natural
fit. CarePort clients will gain access to a broader network of post-acute
providers and can leverage WellSky’s powerful predictive analytics suite, and
leading value-based care technologies. This combination of capabilities will
enable health systems, payers, and post-acute providers to more effectively
collaborate in a data-driven way and enhance patient outcomes.
“Together with CarePort, WellSky will establish new, meaningful connections between historically disparate settings of care. We have the exciting opportunity to bring care coordination to more providers in service of delivering more informed, personalized care,” said Bill Miller, CEO of WellSky. “Through this agreement, we’re ensuring our clients have the intelligent technology they need to do right by their patients, collaborate with payers, and succeed in value-based care models. It’s WellSky’s mission to realize care’s potential, and this moves us that much closer to achieving it.”
