Healthcare IT Introduction
- Healthcare technology assets continue to garner significant interest from both strategic and financial sponsors, driven by increasingly regulatory complexity, ongoing technology adoption by the industry’s various constituents, and the pervasive evolution towards value-based care
- Continued investor appetite for specialty and sector-specific EMR and revenue cycle management solutions, as providers demonstrate a clear preference for purpose-built, best-of-breed solutions in non-acute care settings
- Healthcare organizations continue to extend their focus beyond price and quality of care, with an increasing focus on patient and provider outreach, communication, and educational tools
- Sector innovations continue to target niche operational challenges including patient and staff management and monitoring, and compliance requirements with vendors and clinicians
- Increasingly complex reimbursement arrangements in the face of rising healthcare costs have supported strong payer interest in specialized cost containment and payment integrity solutions
Healthcare IT Taxonomy
- Member Onboarding / Portals
- Patient Outreach & Campaigns
- Patient Engagement / Education
- Digital Wellness Tools
- Benefits & Consumer-Directed Healthcare Tools
- Information Tools & Online Media
- Operational Efficiency
- Inpatient – Clinical
- Outpatient – Clinical
- Post-Acute – Clinical
Pharma & Devices
Revenue Cycle Management
- Charge Capture & Coding
- Claims Management
- Adjudication / Appeal / Review
- Payment Processing
- Patient Collection
- Other RCM Tools
- Regulatory & Analytics
Population Health & Risk Management
- PHM Informatics
- Data Aggregation & Normalization
- Privacy / Security
- Information Sharing / Interoperability
- Population Analytics
- Care Coordination
HW Healthcare IT Transactions
Case Study: Therapy Brands
HW’s TMT Group advised Therapy Brands on its acquisition by Lightyear Capital and Oak HC/FT.
Relevant Healthcare IT Sub-Sectors
- Revenue Cycle Management
- Electronic Health Records
- Practice Management
Therapy Brands is a leading provider of fully-integrated and comprehensive practice management, electronic health record (EHR), payment and revenue cycle management (RCM) solutions for the mental and behavioral health market segments.
Key Value Drivers
- Provides end-to-end solutions streamlining practice management, EHR, RCM, billing and payments, driving operational efficiencies while improving customer satisfaction and clinical outcomes
- Rapidly growing, underpenetrated $9B+ market opportunity, continuously expanding via strong industry tailwinds
- Multiple avenues for continued organic growth including a $190M+ million cross-sell opportunity
- Serves over 14,000 customers with minimal concentration and an expansive U.S. footprint
- Strong financial profile with 40%+ organic revenue growth and ~104% average revenue retention
HCIT Public Market Observations1
Valuation and Operating Metrics1
As of September 30, 2018 ($ in millions)
Select Healthcare IT M&A Transactions1
Waystar’s Acquisition of Connance
- Connance is a leading provider of predictive analytics solutions that personalize patients’ financial and clinical experiences
- Connance’s solutions connect more than 500 hospitals, thousands of physician practices, and more than 80 collection agencies nationwide
- Waystar’s claims management, revenue integrity, denial and appeal management, and payments solutions merged with Connance’s vendor management and payment optimization solutions will further strengthen the revenue cycle platform
Harris Healthcare’s Acquisition of Iatric Systems
- Iatric Systems is a provider of integration tools to help hospitals optimize electronic health records and other IT infrastructure
- Iatric has used recent partnerships, such as with Hospira, to promote more secure connectivity within EHRs
- The acquisition of Iatric Systems represents a natural expansion of Harris Healthcare’s offerings in the healthcare IT space
Syneos Health’s Acquisition of Kinapse
- Kinapse is a provider of advisory and operational services to the global life sciences industry
- Kinapse works across the clinical and commercial lifecycle with small-to-mid and large biopharmaceutical companies, including many of the top 20 global biopharma companies
- An acquisition of Kinapse adds market-leading advisory and operational solutions to enable Syneos to provide customers with end-to-end solutions to accelerate time to market
Vista Equity Partners’ Acquisition of Alegeus Technologies
- Alegeus is a provider of a comprehensive platform for the administration of healthcare benefit accounts and engagement solutions to help consumers maximize savings and optimize healthcare spending
- Alegeus administers benefit accounts for more than 30 million members, and processes over $9.1 billion in consumer healthcare payments annually
- The acquisition offers an opportunity to grow Alegeus through Vista’s expansive network, portfolio of resources, and strategic and operational expertise
Global Payments’ Acquisition of AdvancedMD
- AdvancedMD is a provider of cloud-based SaaS solutions to small-to-medium sized ambulatory physician practices in the U.S.
- Advanced MD offers Rhythm, a complete cloud-based suite of smart applications that accelerate collaborative workflows for every roles within the practice
- The acquisition aligns with Global Payments’ software-driven strategy, and will add significant momentum in a new and attractive market with strong payment fundamentals
What We’re Reading
Amazon Primes To Streamline Healthcare Supply Chain
Modern Healthcare September 29, 2018
Summit Pacific has fully integrated Amazon Business into its supply chain, taking the hassle and expense out of procurement processes, which allows staff to dedicate more time to patient care. A growing number of providers have started using Amazon’s business services to streamline its operations, reduce shipping costs, and add visibility into its supply chain. Initial downsides of Amazon Business have been identified as lack of vendor verification and questioned ability to handle durable medical equipment.
Read the full article here.
Can Blockchain Transform Healthcare IT?
ZD Net September 28, 2018
Dealing with digital transactions involving medical records, patient data, and other sensitive information forces healthcare participants to take additional measures in protecting data integrity and security. Blockchain technology offers the potential to transform healthcare and put the patient at the center of the healthcare ecosystem to increase security, privacy, transparency, and interoperability of health data. The technology has the ability to reduce the friction and costs of current intermediaries, and further connect the fragmented systems to offer better insights and outcomes.
Read the full article here.
Workflow and Platform Innovation Gives Population Health Programs a Boost
Healthcare IT News September 25, 2018
Robert Wood Johnson Medical School and NYU Langone are among early adopters implementing new workflows and technologies into its population health efforts, working to further engage patients outside of office visits. In order to continue improving quality of care, these hospitals are continuing to boost resources going into its population health programs. By continuing to centralize information, multiple parties including physicians, patients, and social workers are all able to view results and streamline workflows.
Read the full article here.
HIMSS: 4 Ways Tech Can Help the Opioid Crisis
Healthcare IT News September 21, 2018
To take action in battling the opioid epidemic in America, HIMMS issued a release, recommending four ways that the healthcare industry can get involved through the combination of health information and technology. HIMSS’ recommendations included leveraging prescription drug monitoring programs, equipping health workers on the front lines against opioids with interoperable EHR information, using secure technology across the care continuum, and leveraging current technological advances to appropriately share information across multiple disciplines.
Read the full article here.
Healthcare Leads the Way When it Comes to an AI Investment
Tech Radar September 15, 2018
Recent studies have revealed that the healthcare sector is leading the industry when it comes to the development of artificial intelligence (AI) research and applications. Google is revolutionizing diagnostics by matching the accuracy of medical experts in diagnosing 50 sight-threatening eye diseases; pharmaceutical companies are employing deep learning in the design of new drugs. Future hurdles for healthcare participants include both technical and feasibility challenges in interpretation and extraction of patient data due to a lack of standard format across entities.
Read the full article here.
M&A Transaction Activity
Select Recent M&A Transactions1
Private Placement Transaction Activity
Select Recent Private Placement Transactions2
Patient-Facing Tools - Landscape
Representative Provider, Payer, and Consumer Tools
To View full market map please contact: *TMT_HCIT@harriswilliams.com
Select HW TMT Transactions
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.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which 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 is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.