MedAssets Makes Analytics Acquisition for $142 Million
MedAssets, an Alpharetta, Ga.-based provider of revenue-cycle management and evidence-based software, has made a significant investment into analytics, acquiring Skokie, Ill.-based Sg2 for $142 million.
Sg2 offers predictive strategic analytics and clinical consulting services for providers and drug and device manufacturers, which aims to allow them to focus on growth potential and strategic planning efforts. The deal for $142 million is to be funded by MedAssets with cash on hand and borrowings under its existing credit facility. It is subject to customary closing conditions and regulatory approvals.
John Bardis, chairman, president and chief executive officer, MedAssets, said in a statement: "In today's rapidly evolving healthcare environment, industry leaders cannot rely alone on analysis of past performance or even current best practices to drive strategic business decisions and adequately prepare for future market dynamics."
MedAssets has a client base of approximately 4,400 hospitals and 122,000 non-acute healthcare providers. It says that these relationships will offer significant distribution opportunities for Sg2's analytics software. They also plan on integrating proprietary cost, claims reimbursement, and episode-of-care datasets and tools into Sg2's software.
MedAssets, which ranked 17th on this year's Healthcare Informatics 100 list, is just the latest company of its ilk to make a play into analytics. Premier Inc., the Charlotte, N.C.-based provider of group purchasing services to hospitals and healthcare facilities, has run the QUEST analytics initiative to a good deal of success. They've gotten 350 hospitals to standardize and share patient data, performance improvement analytics, and evidence-based best practices, saving approximately $11.65 billion and avoiding 136,375 deaths over the course of five-and-half years. Last year, the organization also acquired both SymmedRx, an implantable device supply analytics vendor (for $29 million) and then data integration vendor, Meddius.
