Tenet subsidiary acquires RCM developer
September 24, 2014 in Medical Technology
Conifer Health Solutions, the IT services company launched by Tenet Healthcare, will acquire SPi Healthcare, which makes revenue cycle and health information management technology, for $235 million.
[See also: HCA to acquire PatientKeeper]
Specializing in software for physician practices, Tinley Park, Ill.-based SPi develops specialized RCM tools, such as denials management technology. It also offers services such as RAC audit defense and preparedness services and ICD-10 gap analysis and education.
SPi’s chief executive officer, John O’Donnell, will join Conifer’s senior management team, reporting to Stephen M. Mooney, president and CEO.
[See also: Tenet deal: Win or loss for athena?]
The hope is that SPi will enhance Conifer’s services portfolio and its strategy of offering revenue cycle management and value-based care technology to providers. SPi serves more than 3,700 physicians in 21 states, handling more than $3 billion in physician charges, coding approximately 2.5 million encounters and auditing some 150,000 health records each year.
“The SPi leadership team has achieved decades of sustained growth. They are now a recognized leader in the physician revenue cycle marketplace with a reputation for service delivery excellence,” said Mooney, in a press statement.
“We believe the combined organization will drive incremental growth for Conifer by creating an enhanced value proposition for physicians in a variety of care settings – including integrated delivery networks – that are seeking to improve their operational performance in the era of value-based care and other changes in healthcare delivery and financing,” he added.
SPi also offers payer contract management and software consulting, with a focus on Epic and GE Healthcare electronic health records. This too factored into the deal, said Mooney.
“Nearly 50 percent of large practices utilize GE or Epic EHRs,” he said. “SPi’s long-term experience with these technology platforms represents an important pathway for additional growth for Conifer.”