NASHVILLE, Tenn. — Emdeon Inc. has entered into an agreement to acquire Change Healthcare, a provider of health care consumer engagement and transparency solutions
Emdeon, a Nashville, Tenn.-based provider of revenue and payment cycle management and clinical information exchange solutions, said Wednesday that under the deal it will buy Change Healthcare for about $135 million in cash plus contingent payments of up to $50 million based on the attainment of financial performance objectives of the acquired business through the end of 2017.
The addition of Change Healthcare will bring customers additional solutions that marry cost and quality information with a robust inventory of consumer behavioral insights, according to Emdeon.
"Our customers are prioritizing information, insights and capabilities that enable individuals to be better healthcare consumers," stated Neil de Crescenzo, president and chief executive officer of Emdeon. "While Emdeon has assisted payers, providers, pharmacies and our partner network with cost management, efficiency and maximizing revenues for many years, the addition of Change Healthcare’s innovative, proven capabilities will further accelerate our customers’ success. By combining our connectivity and scale with Change Healthcare’s transparency and personalization capabilities, we can help our customers further increase member and patient engagement and add even more value to the services they provide their customers."
Connecting payers, providers, pharmacies and patients, Emdeon is the nation’s largest financial, administrative and clinical health information network, processing more than 7 billion transactions with a claims value of $1 trillion annually. The Emdeon Intelligent Healthcare Network reaches 700,000 physicians, 81,000 dentists, 60,000 pharmacies, 5,000 hospitals, 600 vendors, 450 laboratories and 1,200 government and commercial payers.
"Within the complex healthcare landscape, consumers are faced with increasing costs and more choices than ever. This transaction reinforces our commitment to transparency and consumer engagement and will enable us to deliver even more comprehensive, accurate and timely information to our users," commented Doug Ghertner, president and CEO of Change Healthcare, also based in Nashville. "By joining the Emdeon team, we will have access to the resources necessary to accelerate our growth and to become the premier platform for consumer engagement in health care."
Plans call for the Change Healthcare team to join Emdeon and form the core of the its health care consumer engagement business, which will be led by Ghertner, who will report directly to de Crescenzo.
The acquisition is slated to close later this month, pending customary closing conditions.
