Healthcare IT Introduction

Harris Williams (“HW”) as a Firm

  • 370+ professionals across eight offices globally
  • 180+ closed transactions in the last 24 months
  • 21st record year in 2018
  • 98% of revenue is from sell-side M&A advisory
  • 10 industry groups
  • 27 $1bn+ enterprise value engagements in the last 24 months

Technology, Media & Telecom (“TmT”) Group

  • 40+ professionals across Boston, San Francisco, and London
  • 55+ closed transactions since the beginning of 2017

TMT Vertical Focus Areas

  • Education Technology
  • Fintech
  • Healthcare IT
  • Human Capital Management
  • Internet & Digital Media
  • Manufacturing Technology
  • Membership Management
  • Public Sector Software
  • Supply Chain, Transportation & Logistics
  • Infrastructure and Security Software

Market Commentary

  • Healthcare technology assets continue to garner significant interest from both strategic and financial sponsors, as increasing regulatory complexity, ongoing technology adoption by constituents across healthcare, and the evolution towards value-based care underpin growth opportunities for innovative software tools
  • Sector innovations continue to target niche operational challenges including patient and staff management and monitoring, and compliance control solutions for vendors and clinicians
  • Investor appetite for specialty and sector-specific EMR and revenue cycle management solutions continues as providers demonstrate a clear preference for purpose-built, best-of-breed solutions
  • Healthcare organizations continue to extend their focus beyond price and quality of care, with an increasing pursuit on patient and provider engagement and educational tools
  • Increasingly complex reimbursement arrangements in the face of rising healthcare costs are supporting strong payer interest in specialized cost containment and payment integrity solutions

Healthcare IT Taxonomy

Patient-Facing Solutions

  • Member Onboarding / Portals
  • Patient Outreach & Campaigns
  • Patient Engagement / Education
  • Digital Wellness Tools
  • Benefits & Consumer-Directed Healthcare Tools
  • Information Tools & Online Media

Select Market Participants


Care Delivery

  • Operational Efficiency
  • Inpatient – Clinical
  • Outpatient – Clinical
  • Post-Acute – Clinical

Select Market Participants


Pharma & Devices

  • Development
  • Trials
  • Commercialization
  • Adherence
  • Regulatory

Select Market Participants


Revenue Cycle Management

  • Charge Capture & Coding
  • Claims Management
  • Adjudication / Appeal / Review
  • Payment Processing
  • Patient Collection
  • Other RCM Tools
  • Regulatory & Analytics

Select Market Participants


Population Health & Risk Management 

  • PHM Informatics
  • Data Aggregation & Normalization
  • Privacy / Security
  • Information Sharing / Interoperability
  • Population Analytics
  • Care Coordination

Select Market Participants


Recent Representative HW HCIT Transactions

screen_shot_2019-10-03_at_11.24.47_am.pngProvider of EHRs for behavioral health clinics





screen_shot_2019-10-03_at_11.25.17_am.pngProvider of EDI and revenue management software solutions





screen_shot_2019-10-03_at_11.25.48_am.pngProvider of GRC solutions for healthcare, life sciences, and higher education





screen_shot_2019-10-03_at_11.26.13_am.pngProvider of healthcare-specific workforce management software





screen_shot_2019-10-03_at_11.26.39_am.pngProvider of market access and formulary information to pharma, payers, and providers





screen_shot_2019-10-03_at_11.27.05_am.pngProvider of healthcare credentialing and payer enrollment solutions





screen_shot_2019-10-03_at_11.27.34_am.pngProvider of education and GRC solutions





screen_shot_2019-10-03_at_11.27.59_am.pngProvider of SaaS solutions to the behavioral health industry





screen_shot_2019-10-03_at_11.28.36_am.pngProvider of population health management solutions





screen_shot_2019-10-03_at_11.29.04_am.pngProvider of incident reporting and risk management software





screen_shot_2019-10-03_at_11.29.32_am.pngProvider of athlete training services





screen_shot_2019-10-03_at_11.30.01_am.pngProvider of patient engagement solutions


HCIT Public Market Observations1

As of September 30, 2019


Public Comparables

Valuation and Operating Metrics

As of September 30, 2019  ($ in millions, excl. stock price)


Select Healthcare IT M&A Transactions1


Canada Pension Plan and EQT’s Pending Acquisition of Waystar

  • Waystar is a provider of medical claims management and patient payment software intended to reduce the costs associated with managing insurance claims
  • The Company’s integrated RCM platform enhances visibility in the revenue cycle for more than 450,000 providers, 750 health systems and hospitals, and 5,000 payers and health plans
  • EQT and CPPIB’s investment will enable Waystar to build on its successful track record of acquiring and integrating leading technologies to strengthen and innovate its product platform



Net Health’s Pending Acquisition of Optima Health

  • Optima Health is a provider of cloud-based electronic medical record software for contract therapy companies, skilled nursing and assisted living facilities, outpatient therapy clinics, home health providers, and hospice organizations
  • The Company’s range of clinical, operational, and billing solutions are used at over 11,000 sites nationwide
  • The combination of Net Health and Optima Health creates an industry-leader serving multiple specialty clinical settings throughout the continuum of care; Optima’s CEO will become the CEO of all Net Health



TPG Capital’s Acquisition of Convey Health

  • Convey Health is a provider of technology-enabled advisory solutions for government sponsored health plans
  • The Company offers a full suite of outsourced administrative solutions and services that help government-sponsored health plans, including Medicare Advantage, Medicare, and Employer Group Waiver Plans
  • Partnering with TPG will allow Convey to realize its next phase of growth through TPG’s industry expertise, ability to identify viable acquisition targets, and deep understanding of building and operating leading healthcare platforms



United Healthcare’s Acquisition of Equian

  • Equian is a provider of integrated pre- and post-payment integrity solutions for the healthcare and insurance markets
  • The Company’s claim data analytics, clinical validation, and workers’ compensation solutions are used by nine of the top ten largest health-care payers, managing more than $500 billion in healthcare claims data annually
  • Following the acquisition Equian will be merged into Optum’s rapidly growing health services arm, which provides services catering to insurers, hospitals, and other healthcare companies



Experian’s Acquisition of MyHealthDirect

  • MyHealthDirect is a provider of digital care coordination solutions that help patients manage and access their care
  • The Company’s care coordination platform allows patients to access and schedule their care through digital applications resulting in increased efficiency for providers and health plans through improved appointment and referral rates and minimized no-shows
  • The combination of Experian’s data and analytics capabilities with MyHealthDirect’s digital care coordination platform will allow Experian to expand their patient engagement capabilities by developing solutions that improve patient convenience while optimizing care

What We’re Reading

Providers: Prior Authorization Needs to Be Better Integrated with EHRs 

Health Data Management  September 16, 2019

Prior authorization, which requires doctors to first obtain approval before conducting a procedure or prescribing a medication, is a process requiring further standardization and streamlining to improve efficiencies across the system. Current procedures require unnecessary data inputs and duplicative tasks, taking time away from physicians with patients. Ideas proposed to combat this issue include the integration into patients’ EHRs. The volume of requests and time spent on these requests has caused additional hires and costs to hospitals and health systems, which could be avoided through improved processes.

Read the full article here.

Digitalizing Internal and External Hospital Processes for Better Healthcare Delivery

Healthcare IT News  September 16, 2019

Due to the varying budgets across healthcare organizations for EHR systems, organizations must factor in several drivers and assumptions to determine the best fit for their organization. The first step for organizations in determining EHR systems is key constraints, one of which is typically budgetary, along with the internal staff resources to meet desired timelines. The next step is to determine the key goals that the organization hopes to achieve – process standardization, improved patient care, performance monitoring – and implement feasible options based on the key needs and budgetary restraints.

Read the full article here.

Healthcare Data at Big Risk as Hackers Innovate and Hone Their Techniques

Healthcare IT News  September 11, 2019

Personal healthcare information is shown to be at risk, as cyber criminals are culling PII from stolen medical records and selling it on the black markets. The majority of these medical records at risk include all items needed for identify theft, such as name, address, and SSN. One report has hypothesized that one reason stores of medical records aren’t being advertised on the underground markets is due to the culling of PII, and selling this valuable information separately. Healthcare organizations need to remain vigilant of these attacks, with a reported 27 attacks on healthcare organizations having occurred already in 2019.

Read the full article here.

Hospitals Lack CEO Buy-In to Invest in Interoperability  

Modern Healthcare  August 19, 2019​

According to recent studies, nearly one third of hospitals are struggling with various types of data sharing with other hospitals, colleagues, payers, and patients. Many hospitals pointed to utilizing a single source-of-truth EHR system to address interoperability challenges; other solutions being adopted by hospital systems include partnerships with interoperability vendors, increasing analytics skillset of employees, and using health information exchanges. The ONC and CMS are working to finalize legislation, which will require insurers and providers to share medical data with patients, with a focus on application interfaces and third-party apps.

Read the full article here.

Where Tourism Brings Price Healthcare, Locals Fight Back

Kaiser Health News  August 9, 2019​

Recently in a county in Colorado, emergency room claims reached 842% of Medicare rates, pushing residents to join forces and begin negotiating prices with the local hospital directly. The group of residents became known as the Park Health Alliance, and through direct interaction with the hospital negotiated members premiums at 20% the cost of current rates. This new phenomenon, known as “direct contracting”, is gaining traction across areas, as consumers want to have more control over their healthcare costs and experience.

Read the full article here.

M&A Transaction Activity

Select Recent M&A Transactions1



Private Placement Transaction Activity

Select Recent Private Placement Transactions


Care Delivery - Landscape

Inpatient & Clinical

To view full market map please contact: *


Select HW TMT Transactions


1. Capital IQ

2. PitchBook


The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. awaited). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.