Pamplona Capital Management has agreed to buy publicly traded MedAssets Inc. (NASDAQ:MDAS) for approximately $2.7 billion. More than 4,500 hospitals and 123,000 non-acute healthcare providers use MedAssets’ performance management solutions.
London- and New York-based investment manager Pamplona said it would combine MedAssets Revenue Cycle Management (RCM) segment with its Precyse business to create an end-to-end revenue cycle technology and services business. It also intends to sell the MedAssets Spend and Clinical Resource Management (SCM) business to VHA-UHC Alliance. (VHA Inc., the national health care network of not-for-profit hospitals, and UHC, the alliance of the nation's leading academic medical centers, formed an alliance in 2015.)
Alpharetta, Ga.-based MedAssets' RCM segment services and technologies touch more than $450 billion in gross patient revenue annually and help more than 2,700 providers optimize reimbursement by improving patient payment estimation, claims coding accuracy, contract modeling, defensible pricing and regulatory compliance strategies, and billing and collection services, among other capabilities.
With revenue of $428.9 million, MedAssets ranked No. 31 on the 2015 HCI 100 listing. Precyse offers fully outsourced health information management services along with medical coding, clinical documentation improvement (CDI) and other technologies.
Pamplona said the combined expertise of VHA-UHC Alliance and MedAssets Spend and Clinical Resource Management business should help acute hospitals, academic medical centers and non-acute healthcare providers improve their financial, clinical and operational performance through enhanced supply chain procurement, cost management, analytics and advisory services.
In addition to these proposed transactions, Pamplona and VHA-UHC Alliance have agreed to work together in select service offerings to serve their mutual members and customers, representing further strategic growth opportunities for both businesses, Pamplona said.
The MedAssets-Pamplona transaction is expected to close in the first quarter of 2016, pending receipt of regulatory approvals and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction also is subject to customary closing conditions, including the approval of the merger agreement by MedAssets stockholders.