Change Healthcare Buys Prometheus Analytics From Altarum

Change Healthcare (Nasdaq: CHNG) has acquired Altarum’s Prometheus Analytics, which helps payer-provider collaborations define episodes of care in value-based payment initiatives.

Healthcare organizations use Prometheus Analytics to optimize their provider networks under value-based care reimbursement models. They create analytic insights that help improve provider performance and provide consumers more value from their healthcare experience. Prometheus includes more than 90 episode of care definitions outlining the entire range of treatment that include all covered services across providers that would typically treat a patient for a single procedure, illness or condition.

The nonprofit Altarum has leveraged Prometheus Analytics to help Colorado, Maryland, Michigan, Minnesota, and New York advance value-based payment by supporting the transition from Medicaid fee-for-service payments to value-based payments, identifying potentially avoidable complications, and producing episode-based spending estimates.

Prometheus was originally developed by the Health Care Incentives Improvement Institute (HCI3) with funding from the Robert Wood Johnson Foundation. In 2017, Ann Arbor, Mich.-based Altarum integrated HCI3 into its operations and launched a subsidiary—Payformance Solutions.  Over the past three years, the Payformance team built TrustHub, an alternative payment model contracting platform that is powered by Prometheus Analytics. TrustHub also moves to Change Healthcare as part of the transaction.

“Altarum has played an important role in maturing value-based payment models, and Change Healthcare is well positioned to expand this work at scale, enabling Altarum to focus on our mission of advancing health of at-risk and disenfranchised populations through clinical quality improvement and public health interventions,” said Altarum President and CEO Lincoln Smith, in a statement. The sales price was not disclosed.

Nashville-based Change Healthcare noted that it was one of the first certified partners of the Prometheus Analytics model supporting some of the nation’s largest health plans with their value-based payment programs.

Prometheus Analytics is integrated into Change’s HealthQX value-based care platform that enables health plans to optimize payment models, evaluate provider performance, identify care variations, and improve network efficiency.

“By owning and continuing to develop the industry standard, Prometheus Analytics, Change Healthcare will support all Prometheus users across the industry as they explore innovative ways to reduce cost, increase quality and improve outcomes,” said Robert Capobianco, vice president and general manager, value-based payments at Change Healthcare, in a statement. “We’re excited about expanding the collaboration around Prometheus Analytics industry-wide to accelerate value-based care in commercial, Medicare and Medicaid markets.”