Acquisition more than doubles Trizetto’s provider base
July 25, 2012 in Medical Technology
DENVER – TriZetto Group’s Gateway EDI subsidiary announced last week that it more than doubled its customer base of healthcare providers with the acquisition of 10-year-old revenue cycle management and electronic transaction processing systems company ClaimLogic.
The deal marks TriZetto’s continued expansion into the provider market and in one fell swoop increased from 70,000 to more than 180,000 the number of providers who now use its products and services. The acquisition of ClaimLogic helps TriZetto reach a differnet segment of the provider market: large hospital systems and larger physician groups, where TriZetto’s base has been smaller physician practices.
[See also: TriZetto acquires Medical Data Express]
With the scale we are building – when you look at the 180,000 providers, who are directly connected to us and then this huge payer footprint with over 350 health plans and benefit administrator organization – we are now able to strategically approach both payers and providers from a collaboration standpoint and bring some real scale to the game,” said Chris Murphy, TriZetto senior vice president and president of its physician market group.
The acquisition comes at a time that is seeing marked increases in the number and nature of payer-provider collaborations in the industry. “We are continuing to see increased market demand for collaboration and improved connectivity between payers and providers and seeing them work more closely together,” Murphy added.
For Oklahoma City-based ClaimLogic the deal was about joining a company with a similar view of the market.
[See also: TriZetto acquires Kocsis Consulting Group]
“Like Gateway EDI, ClaimLogic has always taken pride in putting customers first,” said J.P. Davis, COO and co-founder of ClaimLogic, in a press release. “The combination of our solutions will allow our clients more customization and flexibility to improve their work flow management objectives while improving their top and bottom lines.”
One example of this, is the upcoming launch later this year of a pilot program from TriZetto that will provide a real-time payment assurance and claims editing solution connecting providers with the claims systems of multiple health plans.
The idea is for TriZetto to provide better and more accurate plan coverage information to providers that can help them manage the patient payment responsibilities early on. By getting the patient information at the point of care providers can reduce the amount of bad debt incurred when they need to chase patient payments later.
According to Murphy, this is exactly the kind of program that can benefit from the added breadth of service and customer base provided by the ClaimLogic acquisition.
“We are able to strategically approach both payers and providers from a collaboration standpoint and bring some real scale to the game,” he said. “One of the first questions a provider will ask when broaching the subject is how many payers are involved. Likewise the payers want to know how many providers you have. Scale in this business is very important.”