Datavant has established a fourth enterprise vertical for itself by buying Ontellus, a Houston-based well being information retrieval and claims intelligence firm.
New York Metropolis-based Datavant, which has been round for a couple of decade, is a well being knowledge platform that connects and de-identifies affected person knowledge throughout organizations. By shopping for Ontellus, the corporate provides a authorized and insurance coverage vertical to go together with its three different verticals: payers, suppliers and life sciences companies. This transfer is supposed to facilitate the alternate of scientific and billing knowledge between suppliers and any skilled group that requests them — be it a authorized division or insurance coverage firm.
The deal was introduced Wednesday, and the 2 concerned events aren’t disclosing monetary particulars.
Datavant CEO Kyle Armbrester stated Ontellus stood out as a great acquisition goal on account of its robust know-how platform and skilled administration staff, all of whom are staying on and receiving vital fairness.
He famous that the acquisition of Ontellus helps Datavant’s core mission of lowering administrative burden for suppliers by digitizing medical file requests from legal professionals and life insurers — processes that have been guide and high-volume earlier than.
Digitizing beforehand guide requests frees up Datavant’s product and engineering groups to focus extra on growing affected person and provider-centric options inside hospitals, Armbrester added. He identified that the corporate spends about $150 million per 12 months on inner product innovation and is dedicated to releasing new choices that handle its clients’ ache factors.
By establishing this fourth income vertical, Datavant is looking for to spice up its top-line development in addition to diversify its buyer base.
“I feel it’s a market measurement that would rival our well being plan and payer segments, so it may simply be a billion-dollar-plus vertical over the subsequent a number of years,” Armbrester remarked.
Datavant’s buy of Ontellus marks its second acquisition this summer time, as the corporate closed its acquisition of real-world proof platform Aetion final month.
Sooner or later, Armbrester stated that Datvant will proceed to search for alternatives to develop by offers like these.
“We’re gonna be doing lots of constructing and increasing, and we’re continually underneath surveillance for M & A [targets] of all sizes and styles for our verticals. We’ll do every part we will to help them and develop them, as long as it’s driving worth to our clients,” he declared.
Armbrester highlighted the rising demand for digital well being knowledge and its important position in efforts comparable to accelerating scientific trials, bettering affected person care and lowering healthcare prices — and he reiterated that going ahead, he desires Datavant to be a foundational participant within the sector’s modernization by higher knowledge alternate.
Photograph: boonchai wedmakawand, Getty Photographs
