McKesson bolsters itself for health reform with two buys in one week
Like most smart health IT vendors, McKesson is preparing for a brave new world of value-based care. Toward that end, the healthcare giant made a couple of strategic acquisitions just a week apart earlier this fall.
On Sept. 24, McKesson announced its acquisition of Waltham, Mass.-based MedVentive, which develops risk management and population health technology, for an undisclosed sum. McKesson officials said MedVentive's tools would help its clients become more clinically integrated - engaging both physicians and patients to reduce costs, and help make smooth transition toward accountable care and other risk-based models.
MedVentive was founded in 2005 by Jonathan Niloff, MD, formerly of Harvard Medical School. Its SaaS solutions, MedVentive Risk Manager and MedVentive Population Manager, will complement the McKesson Enterprise Intelligence suite to help healthcare organizations manage the quality, cost and efficiency of providing patient care across settings, conditions and/or other providers, officials said.
"Managing risk and outcomes for patient populations will remain a key focus for providers and payers alike," said Niloff. "Together MedVentive and McKesson will offer the expertise and tools to help improve the quality of care, create financial transparency, and support care collaboration across the continuum."
Together, the McKesson and MedVentive solutions are also meant to enable providers to proactively manage the clinical health of at-risk patient populations by identifying gaps in patient care and delivering actionable information to the physician and care team, officials said.
"More healthcare providers are beginning to assume risk as we move to value-based reimbursement," said Pat Blake, executive vice president and group president of McKesson Technology Solutions. "Whether it's for their employee population, a Medicare shared savings plan, or a defined disease state group, providers must understand the risk they are assuming. What providers really need - and McKesson's solutions will help offer - is a true picture of the total cost of delivered care based on clinical documentation and claims data across all care settings."
Just a week after its MedVentive acquisition, on Oct. 1, McKesson announced it would acquire Pittsburgh-based MED3OOO, which develops physician group management, billing and revenue cycle tools. The firm's hosted applications, third-party administrator services and cloud-based technology are geared towards helping practices adjust to a changing healthcare landscape, officials said.
The acquisition - terms of which were not disclosed - is meant to complement the medical billing and practice management service offerings of McKesson Revenue Management Solutions (RMS), and to help customers adapt to an accountable care environment.
"The future of healthcare reform will reward those that can provide measureable improvements in the cost, quality and access to care," said Patrick Hampson, chairman and CEO of MED3OOO. "Together, McKesson and MED3OOO will provide industry leading expertise and the sophisticated infrastructure and reporting that our provider, supplier and employer customers need as they better manage their populations of patients and employees."
"McKesson and MED3OOO share a commitment to help customers navigate growing healthcare complexity and achieve their full potential," said Pat Leonard, senior vice president and general manager, RMS at McKesson. "We are excited about the opportunity to combine best practices and superior technologies to help providers and other customers improve their operations and achieve better business health as part of our Better Health 2020 strategy."
Better Health 2020 is a McKesson initiative aimed at supporting organizations as they focus on the demands of health reform - reducing costs, coordinating care, assuming more risk and managing complex payment models.
"Our goal with Better Health 2020 is to guide customers through their current crossroads - meaningful use, ICD-10 and others - and equip them for success as they deal with cost reduction, begin to coordinate care, collaborate with payers and manage complex payment models," said Blake.