Emdeon Inc. today announced it
has entered into a definitive agreement to acquire Change Healthcare, a market
leader in healthcare consumer engagement and transparency. Change Healthcare
will enable Emdeon to offer its customers additional solutions that marry cost
and quality information with a robust inventory of consumer behavioral
insights. These solutions can help employees, health plan members and
patients reduce costs and become better healthcare consumers.
"Our customers are prioritizing information, insights and capabilities that
enable individuals to be better healthcare consumers," said Neil de Crescenzo,
Emdeon president and CEO. "While Emdeon has assisted payers, providers,
pharmacies and our partner network with cost management, efficiency and
maximizing revenues for many years, the addition of Change Healthcare's
innovative, proven capabilities will further accelerate our customers'
success. By combining our connectivity and scale with Change Healthcare's
transparency and personalization capabilities, we can help our customers
further increase member and patient engagement and add even more value to the
services they provide their customers."
Emdeon is the largest financial, administrative and clinical health
information network in the nation, processing more than seven billion
transactions with a claims value of $1 trillion annually. Emdeon's
Intelligent Healthcare Network™ reaches 700,000 physicians, 81,000 dentists,
60,000 pharmacies, 5,000 hospitals, 600 vendors, 450 laboratories and 1,200
government and commercial payers.
Change Healthcare president & CEO Doug Ghertner added, "Within the complex
healthcare landscape, consumers are faced with increasing costs and more
choices than ever. This transaction reinforces our commitment to transparency
and consumer engagement and will enable us to deliver even more comprehensive,
accurate and timely information to our users. By joining the Emdeon team, we
will have access to the resources necessary to accelerate our growth and to
become the premier platform for consumer engagement in healthcare."
Change Healthcare was founded to transform the way consumers evaluate and
utilize healthcare services by combining unique insights at the point of
decision with sustainable engagement. With a national customer base of health
plans and employers and more than 10 million lives under contract, Change
Healthcare is a leading provider of healthcare consumer engagement and
value-based healthcare solutions that enable consumers to:
o better understand and utilize their healthcare benefits and options;
o receive proactive insights on a dynamic basis at critical decision points;
o make informed healthcare purchasing decisions based on quality, cost and
convenience; and
o manage their out-of-pocket responsibility and realize savings.
Consumers continue to enroll in high deductible health plans at a rapid pace.
Over 80% of employers now offer these plans and nearly 40% of employees have
deductibles of $1,000 or more. In addition, an increasing number of
healthcare consumers are choosing their benefits through public and private
health insurance exchanges. These plans offer more flexibility but often have
higher out of pocket expenses, requiring consumers to better understand their
healthcare benefits and find ways to maximize the value of their healthcare
spend. As a result, consumers increasingly need accurate cost and quality
information before treatment as they learn to "shop" for affordable
healthcare. Creating improved consumer and provider access to cost and
quality data at the point of care is a core component of any value-based
healthcare delivery system and will have a significant impact on on-going
healthcare expenses.
Like Emdeon, Change Healthcare is headquartered in Nashville, Tennessee. The
rapidly growing team at Change Healthcare will join Emdeon and form the core
of the company's healthcare consumer engagement business. The business will
be led by Change Healthcare's president and CEO, Doug Ghertner, who will
report directly to Emdeon's CEO.
Emdeon will acquire Change Healthcare, a privately held company, for
approximately $135 million in cash payable at closing, plus additional
contingent payments of up to $50 million based upon the attainment of
financial performance objectives of the acquired business through the end of
2017. The purchase price will be paid with a combination of available cash and
funds under Emdeon's revolving senior credit facility. The acquisition is
subject to customary closing conditions and is expected to close later this
month.
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