Revenue cycle company Emdeon this week announced plans to acquire Altegra Health, an analytics firm, for $910 million, a move the companies said will better position them as the industry moves to a value-based model.
According to the companies, Emdeon will integrate its network of 700,000 physicians, 105,000 dentists, 60,000 pharmacies, 5,000 hospitals, 600 vendors, 450 laboratories and 1,200 government and commercial payers with Altegra’s risk adjustment and analytics product.
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Miami Lakes, Florida-based Altegra, which operates across the United States, holds many contracts with large Medicare Advantage and Managed Medicaid health plans, as well as plans available on the commercial insurance exchanges.
Emdeon will use a mix of debt and new equity financing to cover the deal, which still must be approved by regulators.
Many experts have predicted a wave of consolidation among vendors, especially in the revenue cycle and analytics space, as more healthcare providers look for end-to-end products to manage their businesses.
The deal is expected to close in the third quarter of 2015.
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