CPSI, a community healthcare solutions company has reached an agreement to acquire Get Real Health, a Rockville, MD-based comprehensive patient engagement platform for $11 million in cash. CPSI is the parent of three companies – Evident, LLC, American HealthTech, Inc. and TruBridge, LLC. The acquisition will allow CPSI to advance their ability to care for patients outside the walls of a community healthcare facility.
Value-Based Care Creating New Demands for Patient Engagement
Value-based care and consumerism are creating new demands for patient engagement. Founded in 2000 by Jason Harmon, Mark Heaney, and Robin Wiener, Get Real Health combines a world of new information from patients, devices and apps with existing clinical data to help individuals and healthcare professionals engage and empower each other. The company’s comprehensive suite of patient engagement solutions includes
– Ellie addresses the entire chronic care management process, end-to-end, by investing patients in their own care and promoting effective communication and interaction with their care managers;
– Instant PHR is a patient portal built to promote more efficient collaboration between the individual and their healthcare provider
– CHBase combines clinical data and personal health data to give a complete view of a patient’s health story.
– Lydia is a destination for HealthVault users to transition their existing data after the pending retirement of HealthVault.
Acquisition Benefits for CPSI
Through this acquisition, CPSI will strengthen its position in community healthcare by offering three new comprehensive patient engagement and empowerment solutions that are offered by Get Real Health. CPSI acute and ambulatory customers will be able to use InstantPHR and CHBase to engage their patients in a much deeper way than traditional patient portals. The company’s Ellie app will allow CPSI customers to improve their patients’ health outcomes while strengthening their own bottom lines.
Get Real Health also brings a decade’s worth of international business experience and connections, opening potential new markets for CPSI’s existing offerings. Conversely, CPSI’s greater resources and capabilities will help Get Real Health scale to serve existing and new customers and markets.
“The demographics and population make-up of the communities we serve support the growing demand for strategies and tools to address the on-going management of chronic care conditions, which are prevalent in these areas,” said Boyd Douglas, president and chief executive officer of CPSI. “Helping our customers secure the future of community healthcare is what we focus on each and every day. By acquiring Get Real Health, we can continue this effort as providers evolve to a value-based care delivery model.”
Financial Details & Impact
Under terms of the agreement, CPSI will $11 million in cash, plus an earn-out payment of up to a maximum of $14.0 million, depending on the EBITDA performance of Get Real Health during 2019. CPSI will use a draw of approximately $11.0 million under its existing senior secured revolving credit facility to finance the acquisition.
CPSI anticipates that this acquisition will yield approximately $1.0 million in annual cost synergies, primarily from the replacement of CPSI’s existing patient engagement solutions. Additionally, the acquisition is expected to be accretive to Adjusted EBITDA for 2019.
