ALPHARETTA, Ga. & GREEN BAY, Wis.--(BUSINESS WIRE)--HealthPort and IOD today announced an agreement to merge, marking a milestone in the evolution of information services for the healthcare industry.
The proposed merger, facilitated by an investment from New Mountain Capital, will create a new company with combined revenues of more than $450 million and 6,000 professionals serving approximately 18,000 healthcare facilities across the U.S. The combination will significantly benefit all constituents of the healthcare system, including patients, healthcare providers, managed care plans, law firms, government agencies and other entities that are increasingly utilizing clinical data.
“Bringing together IOD and HealthPort will create the scale and resources to improve what we do today and help us accelerate innovation and serve customers in new ways,” said George Abatjoglou, CEO of IOD.
“This merger combines the strengths and capabilities of two of the industry’s leaders, creating a wider selection of higher-quality clinical data services and a platform for growth,” added Mike Labedz, President and CEO of HealthPort.
The transaction is expected to close in the second quarter of 2015, subject to customary regulatory approvals and closing conditions.
Creation of large-scale clinical data platform
The merger will create a leading provider of technology-enabled secure access solutions for confidential medical information and related services and technology. The combined company will be well positioned to create innovative insights and product offerings from widely dispersed clinical data. As medical records become fully digitized and changes in healthcare gain momentum, the company’s broad access to clinical data and its transformation capabilities will help customers create value.
“The merger of HealthPort and IOD creates a new company that will lead the industry and set new standards by improving quality and efficiency for the healthcare system. We look forward to working with management to develop the strategy for an accelerated growth trajectory, including the application of technology and automation of core processes and the creation of value for customers on a large scale. We believe the company will play a critical role in the evolving healthcare technology landscape,” says Matt Holt, Managing Director of New Mountain.
Continuity and improved service for current customers
The combined company will continue to offer a full range of information services for healthcare providers, including:
- Release-of-information (ROI) services and technology solutions
- Audit management services and technology solutions
- Government audit services and technology solutions
- Clinical data coding and abstracting services
- Document conversion services
- Health information consulting and training
Throughout the integration process, HealthPort and IOD will continue to provide their current solutions and service to customers. In the months ahead, the company will introduce new offerings to help customers meet challenges posed by the evolution of their electronic health records (EHR), meaningful use compliance, the impending ICD-10 transition, and evolving reimbursement models.
About IOD Incorporated
With more than 30 years’ experience in modernizing health information management, IOD unlocks data throughout the healthcare enterprise for on-demand delivery in actionable form. With a unifying, technology-driven solution set covering traditionally separated functions — release of information, coding, audit management, denial management and document management — IOD empowers healthcare enterprises with performance-improving information that crosses functional lines.
HealthPort is a leading provider of medical information access management and compliance services to healthcare organizations. It partners with healthcare organizations to mitigate risk, improve financial performance, and increase requestor satisfaction by providing access to HealthPort Connex™, the largest, most secure distribution network and technology portal available for protected health information (PHI), as well as a HIPAA-trained staff backed by legal expertise.
About New Mountain Capital
New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity, and credit funds with over $15 billion in aggregate capital commitments. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit www.newmountaincapital.com.