What You Should Know:
– Today, global health IT company, Edifecs announced it has entered a definitive agreement to acquire Health Fidelity, a San Francisco-based tech provider. Together, the companies will offer health plans and provider customers with the most complete risk adjustment solution in healthcare.
Edifecs, Inc., a health information technology solutions company, announced today that it has signed a definitive agreement to acquire Health Fidelity, a leading provider of risk adjustment solutions for the value-based care era. The acquisition is expected to close in mid-December, pending regulatory approval. This acquisition follows Edifecs’ recent acquisition of Talix, a IT company. Both acquisitions are examples of the record-breaking transaction activity in healthcare this year. According to a recent Rock Health report, Q3 2021 was the largest quarter to date for digital health M&A activity with 79 deals in which a digital health company was acquired or underwent a merger.
Health Fidelity Acquisition will add Control and Predictability to the Risk Adjustment Process
This potential acquisition underscores Edifecs’ growth strategy to become an industry leader in risk adjustment. Health Fidelity offers risk-bearing organizations clear visibility for critical decision-making, and control over the process. Health Fidelity’s technology uncovers insights that enable better care planning and more complete revenue capture; giving health plans and providers the ability to succeed in risk-sharing arrangements across Medicare Advantage, Affordable Care Act (ACA), Medicaid, and Accountable Care Organization programs.
Edifecs plans to integrate Health Fidelity and Talix technology into its signature Encounter Management solution to provide customers the opportunity to operate risk adjustment processes more efficiently for Medicare Advantage, Managed Medicaid, and ACA products. When the acquisition is complete, joint customers will have access to up-to-date claim and member information via Fast Healthcare Interoperability Resources (FHIR) application programming interfaces (APIs), highly scalable workflows, and mass actions that reduce the operational staff required to manage exceptions.
“This potential acquisition marks the beginning of a new, exciting chapter for Health Fidelity. Edifecs’ execution, service resources, and process strength, coupled with our innovative solution portfolio will be a powerful combination,” said Steve Whitehurst, CEO of Health Fidelity. “We evaluated dozens of potential partners and it quickly became clear that our respective expertise and combined resources will propel clients to realize new levels of excellence in their risk adjustment programs,” he added.
Financial details of the acquisition were not disclosed.