Emdeon is boosting its portfolio of service offerings to payers with the planned acquisition of Healthcare Technology Management Services.
The Nashville-based provider of claims clearinghouse and revenue cycle management services announced Tuesday that it plans to pay $8.5 million in cash and $2.5 million in stocks for HTMS, an Indianapolis-based IT consulting firm focused on serving health insurers. Additional cash payments over the next three years based on performance could push the deal to as high as $14 million.
HTMS offers consulting services designed to help payers manage their IT strategies and acquisitions. The acquisition is expected to enhance Emdeon’s services to payers, which include solutions to help them prepare for the implementation of ICD-10 code sets and HIPAA 5010 and pharmacy D.0 transaction formats (to that end, the company recently launched HIPAASimplified.com, a transaction standards resource).
Company officials said Emdeon will be better positioned to assist payers with analysis, selection, procurement and implementation services in deploying IT solutions quickly and cost-effectively.
“We are extremely pleased to complement our leading revenue and payment cycle management solutions with consulting services to the healthcare payer market,” said George Lazenby, Emdeon’s chief executive officer. “By moving directly into the professional services arena, Emdeon will be able to further expand its position as a strategic partner to our customers and, importantly, support the growth of our existing business.”
“HTMS' focus, proven experience in healthcare and expertise in core administrative and care management systems will allow Emdeon to significantly increase our value proposition to our payer customers,” added Gary Stuart, executive vice president of Emdeon's Payer Services Division. “Their in-depth knowledge of the payers' systems, coupled with Emdeon's solutions and network, creates a powerful combination that has the ability to accelerate the return on investment we deliver to our customers.”
“In light of possible healthcare reform, ongoing regulatory changes and the trend towards consumerism in healthcare, payers have increasing needs for advice in assessing their current IT strategies,” said Michael Weiher, HTMS’ founder and principal. “By combining with Emdeon, we will be better positioned to leverage its infrastructure, payer relationships and distribution network to respond to market needs.”