Inovalon to Acquire Ability Network for $1.2 Billion | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Inovalon to Acquire Ability Network for $1.2 Billion

March 7, 2018
by David Raths
| Reprints
Seeks to become ‘vertically integrated leader in cloud-based enablement of data-driven, value-based care.’

Inovalon (Nasdaq: INOV), a healthcare data analytics company, has agreed to acquire privately held Ability Network for $1.2 billion in cash and stock.

Bowie, Md.-based Inovalon, which went public and raised $600 million in February 2015, identifies gaps in care, quality, data integrity and financial performance for health plans, accountable care organizations, hospitals, physicians and pharma/life-sciences researchers.

The company said the acquisition would create a “vertically integrated leader in cloud-based enablement of data-driven, value-based care.” It will gain access to the 44,000 acute, post-acute and ambulatory customers on Minneapolis-based Ability’s platform, which has both administrative and clinical tools. Ability was founded in 2000 and has grown organically and through acquisition.

 In a press release, Inovalon said data and analytics brought to the patient’s point-of-care within the clinician work-flow would enable high-value applications of data sought after by its customers: health plans, employers, pharmaceutical companies, medical device manufacturers, and diagnostic companies.  “Concurrently, acute, post-acute, and ambulatory care providers are eager to have access to deeper data, more advanced analytics, data-driven best-practices, clinical care protocols and decision support, and value-based tools to empower them to better succeed in a marketplace asserting growing cost pressures, outcomes expectations, and increasingly complex contract structures upon them. The capabilities achieved through the combination of Inovalon and Ability will empower a highly symbiotic ecosystem and a resulting value that is much greater than the sum of the parts.”

In 2015 Inovalon acquired Avalere Health Inc., a provider of data-driven advisory services and business intelligence solutions to the pharmaceutical and life sciences industry.

In its 2017 fiscal results released in February, Inovalon reported revenue of $449.4 million, an increase of 5 percent from $427.6 million for 2016. Net income for 2017 was $34.8 million or 24 cents per share compared with $27.1 million or 18 cents per share for 2016.
 

 

2018 Minneapolis Health IT Summit

Renowned leaders in U.S. and North American healthcare gather throughout the year to present important information and share insights at the Healthcare Informatics Health IT Summits.

June 13 - 14, 2018 | Minneapolis

Topics

News

Cumberland Consulting Buys LinkEHR, Provider of Epic Help Desk Services

Cumberland Consulting Group, a healthcare consulting and services firm, has acquired LinkEHR, which provides remote application support, including Epic help desk services.

Population Health Tool that Provides City-Level Social Determinants Data Expands to 500 Cities

A data visualization tool that helps city officials understand the health status of their population, called the City Health Dashboard, has now expanded to 500 of the largest cities in the U.S., enabling local leaders to identify and take action around the most pressing health needs in their cities and communities.

Trump will Nominate Acting VA Secretary Wilkie for Permanent Position

Just a day after the Department of Veterans Affairs (VA) and Cerner inked their $10 billion EHR (electronic health record) deal, President Trump said he would be nominating Acting VA Secretary Robert Wilkie for the permanent position.

ONC Names API Server Showdown Stage 2 Winner

The Office of the National Coordinator for Health Information Technology (ONC) has named 1UpHealth as the Stage 2 winner of the “Secure API Server Showdown” challenge.

EHNAC Developing Trusted Exchange Accreditation Program

To align with the Trusted Exchange Framework and Common Agreement, the Electronic Healthcare Network Accreditation Commission, a nonprofit standards development organization and accrediting body, is working with other organizations to establish a new Trusted Exchange Accreditation Program.

Lawmakers Demand New VA CIO, Citing “Malign Neglect” on EHR Project

A group of Democratic federal lawmakers, five senators and six members of Congress, are calling out the U.S. Department of Veterans Affairs (VA) for what they call “malign neglect” in the agency’s efforts to achieve electronic health record (EHR) modernization.