In a deal with eyes on the future of payment bundling and risk sharing among payers and providers, McKesson has announced an agreement to buy Portico Systems for a reported $90 million.
The acquisition of Portico, which focuses on providing systems and software to health plans, will allow McKesson to offer a comprehensive suite of products and services to providers and payers alike as they look to create the new payment and care delivery models expected to blossom under health reform.
According the Ned Moore, CEO of Portico, the two companies had been engaged in off-and-on partnership discussions in the past about how to strategically address changes in the market including value-based reimbursement, the increase in complexity of payer and provider systems and the shift of risk to providers under new models like ACOs.
[See also: CMS ramps up for ACOs, seeks physician input; AAFP study sees success in clinic-based ACO]
"If you look at it from a high level, McKesson has a lot of expertise in the clinical side, along with a lot of claims tools they have to support claims. Those are two big pieces that are coming together on the reimbursement puzzle," said Moore. "The piece that we add is the network view – the overall management of the provider network and as we see things like more and more narrow networks and specialized networks…that is what we bring to the table."
Of special focus for the two companies will be helping provide the information capabilities needed to effectively manage accountable care organizations. While not officially a network of providers, the structure of an ACO – where doctors of an array of specialties manage patient health under a single umbrella – both companies expect to leverage the network management tools from Portico in an ACO setting.
Or as Emad Rizk, MD, president of McKesson Health Solutions said in a statement: "The ability to create new products that use value-based reimbursement to align payers and providers on achieving the right outcomes is a key strategic imperative. Portico will further enhance McKesson's ability to help organizations efficiently navigate and manage increasingly complex delivery systems."
While neither company announced the agreed sale price, holding company Safeguard Scientifics, which holds a significant stake in Portico, issued a press release tagging the purchase price at $90 million. Of that total, $5 million will be contingent on Portico attaining certain performance milestones.
"Portico has become a leader in provider network management by offering solutions that streamline key business processes and optimize payments for the health insurance industry," said Kevin L. Kemmerer, EVP and managing director of the Technology Group at Safeguard and a member of Portico's board. "We believe that this acquisition allows McKesson to broaden its product portfolio in order to address changing market needs."
The acquisition is expected to close within 45 days, pending regulatory approval. Moore said Portico's roughly 140 U.S.-based employees will continue to operate from the company's Blue Bell, Pa. headquarters as well as its office in Beaverton, Ore.