Health Catalyst, a provider of data and analytics technology and services to healthcare organizations, entered into a definitive agreement to acquire Vitalware, a provider of revenue cycle management solutions for hospitals and health systems of all sizes.
VitalWare, founded in 2011, has received an undisclosed amount of VC funding (in 2015) from Eight Roads Ventures and F-Prime Capital.
According to the company, its suite of revenue cycle solutions and services used by nearly 1,000 healthcare organizations addresses all aspects of mid-revenue cycle management, including documentation, coding, charge capture, auditing, and lost revenue recovery.
The amount of the acquisition was not disclosed. Health Catalyst expects to fund the acquisition using a mix of stock and cash.
Health Catalyst CEO Dan Burton said, “In addition to adding a best in KLAS technology solution from Vitalware, this acquisition is another powerful example of Health Catalyst’s ability to integrate and scale software on top of our DOS™ platform. Ultimately, DOS, our cloud-based data platform, will further enhance the analytics insights made available by Vitalware’s technology by integrating charge and revenue data with claims, cost, and quality data.”
More recently, Health Catalyst acquired healthfinch, a healthcare workflow automation company, for$40 million.
“Vitalware, since inception, has been about delivering solutions that provide critical insights and better financial outcomes to health systems,” said Vitalware CEO and Co-founder, Kerry Martin. “We have a great team committed to our clients and their success, and adding the expertise and solutions from the Health Catalyst team will allow Vitalware to deliver even more innovative solutions. Our number one priority continues to be to create positive outcomes for our clients, and we’re confident the combination of our resources with Health Catalyst will only accelerate that effort.”
Eighty-three digital health companies were acquired in the first half (1H) of 2020, according to Mercom’s 1H 2020 Digital Health Funding and M&A Report. Recently, R1 RCM, a technology-enabled revenue cycle management services to healthcare providers, acquired SCI Solutions (SCI), a digital patient scheduling and engagement platform, for approximately $190 million.
Image Credit: Health Catalyst