Former Allscripts, struggling Veradigm reported a strong cash position and reduced debt this week, prompting immediate rumors of a sale, while another electronic health records vendor, Meditech, announced Wednesday that it would leverage the Trusted Exchange Framework and Common Agreement. The EHR vendor said it had selected Health Gorilla to provide its health information exchange, Traverse Exchange, with access to its Application Programming Interface-based data exchange.
Elevance Health and its global private equity management partner, Clayton, Dubilier and Rice, also said Wednesday that they have formed a national advanced primary care platform company called Mosaic Health. The integrated health platform aims to strengthen the relationship between clinicians and their patients by positioning doctors to address both physical health and social and behavioral health factors of patients.
Veradigm may be selling
Earlier this week, Veradigm, the merged company formerly known as Allscripts and Veradigm Life Sciences, reported a balance of about $330 million, showing a strong cash position and reduced debt.
The next day, Axios said it had confirmed that the sale of the EHR vendor and healthcare technology company had begun, and that private equity firms were interested.
Thoma Bravo, owner of NextGen Healthcare, is said to be one of the first bidders competing to acquire Veradigm, according to Ion Analytics, a business intelligence and software provider.
NextGen previously partnered with Veradigm Life Sciences to collect out-of-hospital clinical data across the two companies’ combined EHR platforms, amassing 150 million anonymized EHR patient records to support large-scale medical research in 2019.
“Part of our strategy is to go into targeted therapeutic areas, initially focusing on chronic diseases that have a significant impact on the population,” said Tom Langan, then-CEO and now interim CEO of Veradigm, of the company’s efforts to compile clinical data.
A handful of brokerages have advised shareholders to hold Veradigm, according to Defense World, a defense contracting and procurement news site.
After more than five years of streamlining and leadership changes, as well as selling its major hospital and physician practice business in 2022, Veradigm said last year it had discovered additional revenue misstatements dating back to fiscal 2020.
In 2023, after potentially delisting from Nasdaq, the merged company appointed new leaders in December of that year.
In January, law firm Robbins Geller Rudman & Dowd LLP announced it had filed a class action lawsuit against the EHR vendor for allegedly violating the Securities Exchange Act of 1934 by overstating its business revenue by up to $20 million. On March 1, the court appointed a lead plaintiff and lead counsel.
The company continues to push analytics and coding milestones through a variety of partnerships, including New York City-based Holmusk, a behavioral health data company, national orthopedic clinic Unity MSK, and many others.
We reached out to Veradigm but the company is currently unavailable for comment.
“As a matter of policy, Veradigm does not discuss rumor or speculation,” a spokesperson said. Healthcare IT News via email on Thursday.
Meditech selects Health Gorilla QHIN
By partnering with Health Gorilla’s Qualified Health Information Network, Meditech will enable HIE interoperability through a single API, master patient index, record locator service, and data processing engine.
Health Gorilla QHIN, also a California Qualified Health Information Organization, provides access to national networks and frameworks through the company’s Patient360 platform.
The company said in its announcement that after the integration, Meditech Traverse Exchange participants will have access to more than 220 million patient records, 750 thousand clinicians, and more than 147 thousand care locations.
With more data available at the point of care, clinicians can improve decision making and build more personalized care plans.
The EHR vendor is focused on exchanging clinical data to maximize care delivery, Mike Cordeiro, senior director of market interoperability and product strategy at Meditech, said in a statement.
“Traverse Exchange overcomes the limitations of static documents and fragmented data by using advanced technologies, such as Health Gorilla, and intelligent workflows to enhance the accessibility and usability of data, regardless of source,” he explains.
Steve Yaskin, CEO and co-founder of Health Gorilla, said in a statement that the companies have previously collaborated on interoperability in Canada.
“Meditech has demonstrated an unparalleled commitment to improving interoperability and we are proud to support them as they begin to participate in TEFCA through our QHIN and expand their Traverse Exchange network.”
Elevance, CD&R Launch Mosaic Health
Elevance Health and CD&R’s new national healthcare delivery platform combines Apree Health, a care navigation company, and Millennium Physician Group to deliver what they call in the announcement a unique set of clinical and digital capabilities.
The business units that make up Mosaic Health will benefit from a community care model enhanced by patient engagement, care coordination and digital navigation, the companies said in a statement Wednesday.
They will be able to exchange resources and knowledge across all Mosaic Health operating companies to accelerate efforts towards the goal of comprehensive healthcare for diverse patient populations.
Bryony Winn, president of Carelon Health at Elevance Health, called the launch a major milestone.
“Mosaic Health represents a new model of innovative primary care, and we look forward to working with Mosaic Health and CD&R to accelerate growth in new markets and deliver outstanding care to more patients and communities across the country.”
Andrea Fox is senior editor of Healthcare IT News.
Email: [email protected]
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