HMS Holdings Corp. has acquired Eliza Corporation (“Eliza”), an engagement management and member analytics firm providing comprehensive and personalized member-centric outreach and engagement solutions for $170 million in cash. Through its subsidiaries, HMS Holdings provides coordination of benefits, payment integrity and care management solutions for payers. HMS serves state Medicaid programs; commercial health plans, including Medicaid managed care, Medicare Advantage and group and individual health lines of business; federal government health agencies, including the Centers for Medicare & Medicaid Services and the Veterans Health Administration, etc.
For HMS Holding, the acquisition will represents a strategic expansion into care and population analytics and risk management markets that aligns with their short and long term goals. HMS also plans to utilize certain Eliza Health assets and analytics to strengthen its existing core product offerings.
“Payers are seeking reliable insights and actionable information to manage risk and improve the quality of care delivered. The addition of Eliza will position HMS to impact both revenue and costs for our health plan customers, while continuing to supply needed tools to more effectively manage the care of their members across all markets. Our ability going forward to be a one-stop source for cost containment initiatives – including coordination of benefits, payment integrity, care management, member health and risk analytics, and now member engagement – is unique in the marketplace and will further strengthen our capacity to help bend the healthcare cost curve,” said Bill Lucia, HMS Chairman and CEO in a statement.
Incorporated in 2000 and owned by Parthenon Capital Partners, Eliza’s health engagement management and member analytics platform successfully integrates proprietary data assets, a deep understanding of the healthcare consumer, and multichannel outreaches and technology to deliver mission-critical results for customers – primarily health plans, PBMs, home health and disease management companies. Eliza currently serves over 70 customers, boasting a strong presence with the leading US health plans serving eight of the top 10 health plans in the United States.
“Over the past fifteen years, Eliza has built best-in-class solutions designed to deliver a consistent consumer experience, utilizing data-driven design to personalize content, motivate consumers, drive ideal behaviors and reduce the cost of care. As a result, eight of the top ten health plans in the U.S. utilize our unified approach to get their members to take action,” said John Shagoury, Eliza President and CEO. “As a stand-alone company, Eliza had a track record of driving measurable and meaningful engagement results through our health engagement management platform providing comprehensive, end-to-end solutions for our customers. The combination with HMS will substantially enhance the value proposition for existing and potential buyers of our collective product suite – offering a more attractive and comprehensive cost containment, care management and member engagement platform than any other market participant,” added Shagoury.
