Cloud vendors join to support providers, insurers and device firms
Inovalon, a vendor of cloud-based platforms to aggregate and analyze data in huge volumes to assess clinical, financial, quality and outcomes performance improvements, will buy complementary firm ABILITY Network for $1.2 billion.
The deal is expected to close in April and to be accretive to Inovalon’s Non-GAAP diluted net income per share in 2018.
ABILITY Network is a cloud-based software-as-a-service analytics vendor that helps providers improve performance in such areas as connectivity, administration, clinical, quality and management. The company serves 44,000 provider facilities of all sizes and types.
Through the myABILITY software platform, an integrated set of cloud-based applications for providers, ABILITY provides core connectivity, administrative, clinical and quality analysis, management, and performance improvement capabilities.
Inovalon’s ONE Platform serves insurers, pharmaceutical firms and medical device companies, and Inovalon will bring these applications within ABILITY Network’s myABILITY platform while expanding its services to Inovalon’s insurance, pharmaceutical and medical device client companies.
“The combination of Inovalon and ABILITY creates a vertically integrated cloud-based platform empowering the achievement of real-time, value-based care from payers, manufacturers and diagnostics all the way to the patient’s point of care,” the companies say.
The companies intend to deliver high-value and high-impact applications of data to insurers, employers, pharmaceutical firms, device firms and diagnostic companies.
On the provider side, the companies will offer access to deeper data, more advanced analytics, best practices, clinical care protocols, decision support and value-based tools to help providers succeed in controlling costs, improving outcomes and more easily handling complex contract requirements.
“This will be an industry-leading combination, resulting in the creation of a vertically integrated leader in cloud-based enablement of data-driven, value-based care,” said Keith Dunleavy, MD, chief executive officer and chairman of the board of Inovalon. “The addition of ABILITY’s innovative platform-based applications, extensive provider client base and connectivity, and efficient, high-volume distribution channel will enable Inovalon to deliver increasingly differentiated value to both ABILITY’s provider customers and Inovalon’s established client base, as well as drive significant growth and accretive financial performance for our shareholders in 2018 and going forward.”
“ABILITY has established a trusted relationship with tens of thousands of provider facilities of all sizes across our nation,” says Mark Pulido, chair and CEO at ABILITY. “Combining our capabilities with the many strengths of the Inovalon ONE Platform will enable significant innovation throughout the healthcare vertical – from the largest of the payers and manufacturers – down to the individual patient’s point of care.”