Healthcare IT Introduction

Harris Williams (“HW”) as a Firm

  • 370+ professionals across eight offices globally
  • 180+ closed transactions in the last 24 months
  • 98% of revenue is from sell-side M&A advisory
  • 10 industry groups
  • 30 $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

  • Investor appetite for specialty and sector-specific EMR and revenue cycle management solutions continues as PE-led roll-ups of specialty practices consistently and predictably lead to investments in technology
  • Increasingly complex reimbursement arrangements in the face of rising healthcare costs are supporting strong payer interest in specialized cost containment and payment integrity solutions
  • Cloud deployment of mission-critical software is growing as healthcare organizations benefit from the reduced cost and complexity of cloud solutions as their IT estates grow and security solutions become more accessible and reliable
  • The consumerization of healthcare and heightened consumer expectations of the “shopping” experience continue to put pressure on healthcare organizations to adopt patient engagement and retention solutions
  • As the volume of patient data collected and available continues to expand, artificial intelligence and machine learning software tools are providing new analytical insights for providers on a patient and population level

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

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Care Delivery

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

Select Market Participants

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Pharma & Devices

  • Development
  • Trials
  • Commercialization
  • Adherence
  • Regulatory

Select Market Participants

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Revenue Cycle Management

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

Select Market Participants

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Population Health & Risk Management

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

Select Market Participants

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Recent Representative HW HCIT Transactions

screen_shot_2020-01-28_at_10.16.27_am.pngProvider of crisis prevention, physical intervention, and dementia care training services

 

 
 

screen_shot_2020-01-28_at_10.17.04_am.pngProvider of pharma marketing, healthcare consulting, and data analytics services

 

 

 

screen_shot_2020-01-28_at_10.17.55_am.pngProvider of EHRs for behavioral health clinics

 

 

 

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Provider of EDI and revenue management software solutions

 

 

screen_shot_2020-01-28_at_10.20.14_am.pngProvider of GRC solutions for healthcare, life sciences, and higher education

 

 

 

screen_shot_2020-01-28_at_10.20.57_am.pngProvider of healthcare-specific workforce management software

 

 

 

screen_shot_2020-01-28_at_10.22.10_am.pngProvider of market access and formulary information to pharma, payers, and providers

 

 
 

screen_shot_2020-01-28_at_10.23.05_am.pngProvider of healthcare credentialing and payer enrollment solutions

 

 

 

screen_shot_2020-01-28_at_10.24.36_am.pngProvider of education and GRC solutions

 

 

 

screen_shot_2020-01-28_at_10.25.24_am.pngProvider of SaaS solutions to the behavioral health industry

 

 

 

screen_shot_2020-01-28_at_10.26.20_am.pngProvider of athlete training services

 

 

 

screen_shot_2020-01-28_at_10.26.56_am.pngProvider of patient engagement solutions

Case Study: Medical Knowledge Group (“MKG”)

HW’s TMT and HCLS groups advised MKG on its recapitalization by Court Square Capital Partners.

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Company Overview

MKG is an integrated, analytics-driven commercialization platform, delivering healthcare provider-targeted solutions on behalf of biopharmaceutical customers to maximize the commercial potential of their brands. The Company provides a blend of advanced analytics, consulting, and commercialization services not available elsewhere in the market. MKG leverages three proprietary analytics solutions that integrate data sets, then overlays medical expertise as well as best-in-class content development capabilities to deliver end-to-end, multi-channel solutions designed to help customers most efficiently drive product adoption.

 

 

Key Value Drivers

  • Analytics-driven commercialization platform that leverages proprietary analytical insights, medical expertise, and content development to deliver end-to-end, multi-channel solutions
  • Market-leading footprint and blue-chip customer base across large pharmaceutical, biotech, and specialty pharma companies
  • Substantial growth opportunity through development of new HCP-focused solutions and expansion into adjacencies backed by strong and favorable industry tailwinds
  • Founder-led and growth-oriented management team with a strong track record of operational excellence

Relevant Healthcare IT Sub-Sectors

  • Data Analytics
  • Pharma Marketing
  • Medical Communications

HCIT Public Market Observations1

As of December 31, 2019

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Public Comparables

Valuation and Operating Metrics1

As of December 31, 2019 ($ in millions, excl. stock price)

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Select Healthcare IT M&A Transactions1

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Leonard Green Partners’ Pending Acquisition of WIRB-Copernicus Group

  • WIRB-Copernicus Group (“WCG”) is a provider of clinical trial optimization solutions, designed to reduce the time and cost of enrolling patients in clinical trials
  • The Company’s solutions enable biopharmaceutical companies, clinical research organizations, and institutions to accelerate the delivery of new treatments and therapies to patients, while maintaining the highest human subject protections
  • Leonard Green’s investment, with continued investment by Arsenal Capital Partners, will enable WCG to further accelerate growth by targeting new market segments and continuing development of new capabilities
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Dedalus’ Acquisition of Agfa Healthcare

  • Agfa’s Healthcare Information Solutions business is a provider of hospital IT and integrated care solutions, including EMR, population health, and integrated care management
  • The Company’s EMR solutions are used in more than 1,300 healthcare facilities primarily in the DACH region and France
  • The integration of Agfa’s superior EMR solutions and Dedalus’ broader international footprint will allow the combined entity to become a market-leading acute EMR vendor in the EMEA and accelerate growth through its integrated care technologies
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WellSky’s Acquisition of ClearCare

  • ClearCare is a provider of a comprehensive business management platform for home care agencies
  • The Company’s home care technology platform is used by over 4,000 home care agencies, representing 600,000 caregivers and 500,000 seniors, including eight of the 10 largest home care agencies in the U.S.
  • The acquisition of ClearCare further expands the breadth of WellSky’s post-acute and community care offerings across the continuum of care
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Veeva’s Acquisition of Crossix

  • Crossix is a provider of privacy-safe patient data and analytics solutions to maximize and measure media and marketing effectiveness by pharma manufacturers
  • The Company’s data and analytics platform consolidates health and non-health data from more than 300 million U.S. patients to be used by over 200 pharmaceutical brands in marketing efforts
  • Crossix will further expand Veeva’s patient data and analytics capabilities to provide clients with industry-leading tools to improve marketing effectiveness
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Merger of RedCard and Zelis by Bain Capital

  • Zelis Healthcare and RedCard Systems provide integrated healthcare cost management and payments solutions
  • The combined Company’s solutions are used by over 700 payers and 600,000 providers, including the top five national health plans, to price, pay, and explain claims at an enterprise sale
  • The combination of RedCard’s payment data platform and Zelis’ claim cost management solutions will meaningfully advance the integrated payments solutions available to payers, providers, and customers

What We’re Reading

Blockchain's Potential in Healthcare Sector

Healthcare Tech Outlook  December 17, 2019

While the digital movement is swiftly gaining traction, not all areas across the healthcare continuum have implemented tools to best increase efficiencies, improve results, and protect patient data. Clinical trials has been one of the most up-and-coming areas in the integration of technology, but to enhance transparency and privacy across the data system, the medical community must take on extensive implementation to entrust all features of the system. By using blockchain in healthcare, records can’t be altered, which increases patient safety and prevents medical fraud. Additionally, blockchain permits for validation of clinical credentials between multiple physicians.

Read the full article here.

Uptake of Population Health Analytics on the Increase – But Gaps Remain

Healthcare IT News  December 16, 2019

Due to siloed data and breadth of customer needs, vendors are struggling to keep pace in delivering care management capabilities. While EHR vendors often offer many capabilities with strong adoption rates, customer satisfaction tends to be lower, with many gaps in services and user-friendly attributes. One of the largest themes that came across through the study was the lack of consolidation and ease of navigation of the data. With increased amounts of data and needs of the customer base, care management and population health tools need increased flexibility to adjust to the user. 

Read the full article here.

Pharmacists Take on Medication Adherence 

Modern Healthcare  December 14, 2019

Earlier in 2019, retail pharmacy Walgreens started hiring health outcomes pharmacists, pharmacists tasked with addressing medical non-adherence. Key responsibilities of the role include identifying customers through an internal electronic platform with specific conditions who have been historically non-adherent and restart these patients on their regimen. Research estimates that patients failing to take medications costs the U.S. healthcare industry between $100 to $300 billion annually. With new information to identify the source of non-adherence gained from health outcomes pharmacists, Walgreens has seen increased adherence in some patients.

Read the full article here.

While U.S. Leads in IT Tools for Patients, Primary Care Doctors Still Struggle to Coordinate Care 

Fierce Healthcare  December 11, 2019

While the U.S. leads in many aspects of healthcare IT, primary care physicians still struggle to coordinate patient care and communicate with other service providers. Key findings from the Commonwealth Fund’s International Health Policy Survey cite failure to communicate with specialists as the primary shortfall of PCPs, followed by lack of coordination with social services. While continued investment and improved technologies can close some of these gaps, a key development will be active cooperation among healthcare and social service professionals.

Read the full article here.

Patient Engagement IT Market Changing, Slowly with the Imperatives of Consumerism

Healthcare IT News  November 22, 2019

With patients taking more control of their healthcare and outcomes, patient experience and engagement becomes an imperative metric for health systems to track toward. One key challenge has become investing in the right technologies that will reach the correct patient population in the most efficient way. Engagement tools, such as online portals and smartphone apps, can be further enhanced with better-designed UI, additional functionalities, and easier connections, to better increase engagement. As organizations look to validate the value they’re offering, this could result in focus on provider outcomes rather than true patient-specific needs.

Read the full article here.

M&A Transaction Activity

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Private Placement Transaction Activity

Select Recent Private Placement Transactions2

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Care Delivery - Landscape

Inpatient & Clinical

To view full market map please contact: *TMT_HCIT@harriswilliams.com

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Select HW TMT Transactions

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1. CAPITAL IQ

2. PitchBook

 

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