The Louisville, Ky.-based Appriss Health—a company concentrating primarily on care coordination software and analytics solutions focused on behavioral health and substance use disorders—will be acquiring Boston-based care coordination solutions company PatientPing.
The deal comes with backing from private equity firms Clearlake Capital Group and Insight Partners, officials announced on March 23. The acquisition was first reported by the outlet PE Hub, which said the deal is worth $500 million. Terms of the transaction were not disclosed by either company, however.
A new Centers for Medicare and Medicaid Services (CMS) interoperability rule requiring hospitals to share admission, discharge, transfer (ADT) notifications spurred PatientPing to raise $60 million in Series C funding last year to fuel expansion to new regions and extend its platform’s capabilities. Starting on April 30, the CMS rule will require hospitals to electronically share event notification information with other providers whenever patients have inpatient or emergency department care events. That round, co-led by Andreessen Horowitz, F-Prime Capital, GV (formerly Google Ventures), and Transformation Capital, with additional participation from existing investors, brought PatientPing’s total funding to more than $100 million. Leaders at PatientPing say its platform delivers e-notifications to providers as identified by patients as well as to requesting community provider groups.
PatientPing said at the time of that funding round that it has experienced record growth over the past year, adding thousands of hospitals, post-acute care facilities, provider organizations and health plans to new and existing markets, including new organizations in Texas, Washington, South Carolina, Pennsylvania, Illinois, Ohio, and Missouri.
Meanwhile, Healthcare Innovation has previously reported on hospitals and other healthcare entities partnering with Appriss Health to use the company’s substance use disorder platform to give clinicians interactive, visual representations of controlled substance prescribing information for patients.
The combined Appriss Health and PatientPing platform serves what officials say is “the largest integrated delivery systems in the U.S., including 2,500 hospitals, 7,500 post-acute facilities, 25,000 pharmacies including every national pharmacy chain and 43 state governments.” They also noted that the combined entity will connect close to one million healthcare professionals across all 50 states at virtually all care settings including primary and specialty care, emergency departments, inpatient facilities, skilled nursing facilities, post-acute facilities, behavioral health treatment centers, pharmacies, home health agencies and state health agencies.
They added that the transaction “will enable the combined companies to deliver more effectively on their shared mission of enabling various stakeholders in the healthcare ecosystem to utilize software and analytics solutions to facilitate better care for patients across the physical and behavioral health continuum.”
In the announcement, officials noted that without comprehensive data and the right tools in the clinical workflow, caregivers struggle to formulate cohesive treatment plans, leading to disjointed and inefficient care that ultimately impacts the patient experience and health outcomes. And in many cases, effectiveness suffers, and costs increase.
“While many providers and payers are actively implementing coordinated care models, to fully realize the benefits, they need software solutions with insights based on comprehensive data sets to communicate across a large network of caregivers. Appriss Health and PatientPing’s combined software and analytics solutions will provide access to high-integrity clinical information and applications that are both accurate and enhance care offerings,” officials stated.
PatientPing CEO Jay Desai said, “This combination is transformational for patient care. PatientPing’s mission since its founding has been to connect providers to seamlessly coordinate and significantly improve patient outcomes while lowering the cost of care. Our combined networks will connect providers across all care settings so they can work together better to improve clinical episodes and care transitions for the millions of patients that interact with the nations’ healthcare providers.”
In a similar market transaction last December, PointClickCare Technologies, which offers cloud-based software technology for the long-term and post-acute care market, announced plans to purchase Collective Medical, a Utah-based company that offers a care notification and collaboration platform.
