Cedar, a developer of end-to-end billing software for hospitals, health systems, and medical groups, has entered into a definitive agreement to acquire OODA Health, a cloud-based patient billing solution provider, for $425 million.
According to OODA Health, its platform used by nearly 20 organizations, including Blue Cross Blue Shield of Arizona, CommonSpirit Health, and Blue Cross Blue Shield of Massachusetts, and Cedar currently works with more than 35 healthcare providers across the United States, including Yale New Haven Health (YNHHS), Summit Health, Novant Health, and ChristianaCare.
Cedar says 84% of U.S. adults are worried about paying their medical bills in the next year, and one in 10 consumers will not pay their bills if they do not understand the administrative process.
The provider and payer billing process remains fragmented, with consumers often caught in the middle, leading to high costs, confusion, and potentially delayed care, Cedar said in a statement. With the acquisition of OODA Health, Cedar further strengthen its healthcare financial technology platform, which is already engaging with more than 300,000 consumers a day.
In March, Cedar closed a $200 million Series D financing round at a $3.2 billion valuation. Tiger Global Management led the funding round with participation from the company’s existing investors.
“Payers and providers recognize the importance of working together to fix the broken consumer financial experience and are more committed than ever to unlocking administrative efficiencies that drive accessibility and affordability,” said Seth Cohen, co-CEO, and co-founder of OODA Health.
Seth Cohen added: “We’re tackling healthcare administration and billing head-on by building the most comprehensive technology and services platform for providers and payers. We’re thrilled to unite our two teams with that goal in mind and are excited to make a more positive and meaningful impact on the lives of consumers.”
Cooley acted as legal counsel to Cedar in connection with the transaction. Fenwick & West served as legal counsel to OODA Health in connection with the transaction.
A total of 63 digital health companies were acquired in Q1 2021, compared to 52 in Q4 2020, according to Mercom’s Q1 2021 Digital Health Funding and M&A Report.