HealthStream Acquires Change Healthcare's Staffing Business for $67.5M

HealthStream, a provider of workforce and provider solutions for the healthcare industry, has entered into a definitive agreement to acquire Change Healthcare’s staff scheduling business, including ANSOS Staff Scheduling (ANSOS) application and related products, for approximately $67.5 million in cash.

Over 300 hospitals and health systems use the Staff Scheduling application to manage workload requirements, labor costs, and optimize staff deployment.

“We have an exciting vision for the future of scheduling and engaging nurses and staff while helping healthcare providers better align staffing with demand,” said Scott McQuigg, Senior Vice President, HealthStream.

In addition to the Staff Scheduling application, the acquisition also includes related products: Enterprise Visibility, a patient tracking system, and Capacity Planner, a predictive analytics tool.

“We are excited to add ANSOS to HealthStream’s growing nurse and staff scheduling business for healthcare providers as we believe this is a major win for everyone: customers, partners, employees, and shareholders,” said Robert A. Frist, Jr., Chief Executive Officer, HealthStream.

To date, HealthStream has acquired nine digital health companies.

In March, HealthStream acquired NurseGrid, a provider of practice management solutions for nursing professionals, for $25 million in cash. Last month, HealthStream acquired nurse and staff scheduling solution ShiftWizard for $32 million.

According to HealthStream, the addition of Change Healthcare’s staff scheduling business will expand its staff scheduling and workforce management solutions portfolio.

Approximately 90 employees from Change Healthcare will join HealthStream upon closing the acquisition.

Mergers and acquisitions (M&A) continue to be the most popular source of exit for digital health investors and companies. One hundred and thirty-two digital health companies were acquired in the first nine months (9M) of 2020, compared to 125 in 9M 2019, according to Mercom’s 9M 2020 Digital Health Funding and M&A Report.

In one of the largest digital health M&A transactions ever, Telehealth provider Teladoc Health has agreed to acquire Livongo Health, a developer of cellular-connected blood glucose meter and app for diabetes management, the deal valued at $18.5 billion.

Learn more about digital health M&A activity since 2010.