Dive Brief:
- Pamplona Capital Management has agreed to buy MedAssets, a healthcare performance improvement company that serves the majority of U.S. hospitals, for $2.7 billion or $31.35 per share in cash.
- A second agreement with VHA-UHC Alliance, the largest member-owned healthcare company, will enable Pamplona to divest MedAssets' Spend and Clinical Resource Management division to VHA-UHC Alliance.
- In addition, Pamplona will merge MedAssets' Revenue Cycle Management division, which serves 2,700 hospitals and has $450 billion in gross patient revenue yearly, with Precyse, a Pamplona-owned health information management services company. The transaction is expected to close in the first quarter of 2016.
Dive Insight:
The combined outcome will provide an end-to-end RCM and HIM tool positioned to partner with health systems to accommodate the evolving reimbursement environment.
According to Modern Healthcare, executives at Pamplona and VHA-UHC said it's too early to know how the transaction will affect the MedAssets brand or the company's management teams. The company reported $190 million in revenue in Q3, up 8.1% from $176 million the same quarter the previous year. However, profits dropped to $8.4 million, down 66% from $24.5 million during Q3 2014.