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
Provider of EHRs for behavioral health clinics
Provider of EDI and revenue management software solutions
Provider of GRC solutions for healthcare, life sciences, and higher education
Provider of healthcare-specific workforce management software
Provider of market access and formulary information to pharma, payers, and providers
Provider of healthcare credentialing and payer enrollment solutions
Provider of education and GRC solutions
Provider of SaaS solutions to the behavioral health industry
Provider of population health management solutions
Provider of incident reporting and risk management software
Provider of athlete training services
Provider of patient engagement solutions
HCIT Public Market Observations1
As of September 30, 2019
Public Comparables
Valuation and Operating Metrics1
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 Transactions2
Care Delivery - Landscape
Select HW TMT Transactions
1. Capital IQ
2. PitchBook
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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: hwgermany@harriswilliams.com). 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.