Accelerates Growth and Diversifies Service Offerings
Expands Payment Integrity Services and Adds a Revenue Integrity Service Line
Deepens MultiPlan’s Penetration within the Government Market
Acquisition is the Second Under MultiPlan’s Enhance-Extend-Expand Strategy
MultiPlan Corporation, a leading value-added provider of data analytics and technology-enabled end-to-end cost management solutions to the U.S. healthcare industry, announced an agreement to acquire Discovery Health Partners (Discovery), an analytics and technology company offering healthcare revenue and payment integrity services, for about $155 million plus transaction costs. The transaction is expected to be completed by the end of Q1 2021, subject to satisfaction of closing conditions including customary regulatory approvals including expiration of the waiting period under the Hart-Scott-Rodino Act. MultiPlan expects to fund the transaction from cash on hand.
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Discovery works with about 80 healthcare payor customers in the Medicare Advantage, Medicaid and commercial markets to improve the integrity of their payment and revenue processes. Discovery solutions will complement and extend MultiPlan’s payment integrity offerings, spanning the claims life cycle to ensure the legitimacy of a payor’s payment requests as well as its premium collections. Together, the companies will offer a full suite of solutions that analyze and impact the right eligibility and claims at the right time in order to be paid correctly the first time.
“Waste in the U.S. healthcare system accounts for about a quarter of total healthcare spending and presents a tremendous opportunity to deliver affordability, fairness and efficiency to the industry,” said Mark Tabak, MultiPlan Chairman and CEO. “This acquisition of Discovery will extend the reach of our program integrity solutions not only across the claim value chain but also across multiple payor lines of business. We look forward to joining forces with Discovery to deepen our value to healthcare payors and the healthcare industry as a whole.”
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The second acquisition under MultiPlan’s Enhance-Extend-Expand strategy, Discovery will increase the Company’s payment integrity footprint and further diversify its revenues. It also delivers on two chief targets of the Extend strategy component: in-network claims and the government market. Once the acquisition is completed, the number of commercial and government payors using MultiPlan services for in-network claims will increase markedly.
“Discovery’s consultative approach to solving each customer’s unique challenges is powered by a data-driven technology platform, advanced analytics, and deep healthcare expertise that blend well with MultiPlan’s,” said Jason Brown, CEO of Discovery. “We could not have found a better company with which to scale our value, continue our record of innovative solution development, and create a lasting positive force against healthcare system waste.”
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