Dive Brief:
- Nashville-based revenue cycle management firm Emdeon announced a $135-million acquisition of Brentwood, TN-based Change Healthcare, just months after it purchased California-based health IT company Capario for $115 million.
- Emdeon, which works primarily with payers and providers, was reportedly interested in getting into the consumer-facing world. Change Healthcare, founded in 2007, offers cost transparency and consumer engagement tools that employers and health plans can use to reduce healthcare spending.
- While the company doesn't start a year with a given budget for acquisitions or a target number, CEO Neil de Crescenzo told reporters Emdeon does look to grow through acquisition if "the right opportunity comes up." The deal—which also may include another possible $50 million in performance-tied incentives—stemmed from conversations about a traditional B-to-B relationship, Change CEO and President Doug Ghertner said Wednesday, a few hours after the deal's announcement.
Dive Insight:
Emdeon is a big player in the RCM world, which is constantly evolving as healthcare organizations' needs change. Given the growing demand for price transparency as the healthcare industry moves into value-based care and consumers take on greater responsibility for their healthcare costs, the deal makes sense.
According to the American Medical Association's National Health Insurer Report Card, patients are responsible for nearly one-quarter of their medical bill—a percentage that is only expected to increase.