Emdeon, a revenue/payment cycle management and clinical information exchange vendor, announced Wednesday (Nov. 19) that it will spend $185 million to buyout consumer education, transparency, and engagement developer Change Healthcare, according to a report in Health Data Management.
“Our customers are prioritizing information, insights and capabilities that enable individuals to be better healthcare consumers,” said Neil de Crescenzo, Emdeon president and CEO, in a statement. “While Emdeon has assisted payers, providers, pharmacies and our partner network with cost management, efficiency and maximizing revenues for many years, the addition of Change Healthcare’s innovative, proven capabilities will further accelerate our customers’ success. By combining our connectivity and scale with Change Healthcare’s transparency and personalization capabilities, we can help our customers further increase member and patient engagement and add even more value to the services they provide their customers.”
Emdeon said that it is the largest financial, administrative and clinical health information network in the nation, processing more than seven billion transactions with a claims value of $1 trillion annually. Emdeon’s Intelligent
Healthcare Network reaches 700,000 physicians, 81,000 dentists, 60,000 pharmacies, 5,000 hospitals, 600 vendors, 450 laboratories and 1,200 government and commercial payers.
Both companies are headquartered in Nashville, Tennessee. The business will be led by Change Healthcare’s president and CEO, Doug Ghertner, who will report directly to Emdeon’s CEO, the companies said.
The deal includes, the companies said, “$135 million in cash payable at closing, plus additional contingent payments of up to $50 million based upon the attainment of financial performance objectives of the acquired business through the end of 2017. The purchase price will be paid with a combination of available cash and funds under Emdeon’s revolving senior credit facility. The acquisition is subject to customary closing conditions and is expected to close later this month.”