Nuance Communications, a major vendor of medical dictation, transcription, speech recognition and natural language processing technologies and services, has acquired the Quantim health information management business line of hospital vendor QuadraMed Corp.

QuadraMed is owned by equity firm Francisco Partners and terms of the acquisition of the Quantim unit were not disclosed. Quantim sells a suite of software modules covering coding, computer-assisted coding, medical necessity compliance, data abstraction, clinical documentation integrity, record management, and electronic documentation management. Nuance also is buying QuadraMed’s Core Measures and Performance Measurement product suite that manages clinical quality and reporting.

Quantim serves about 650 commercial hospitals and the Veterans Health Administration. Nuance expects to quickly combine its natural language processing technology with Quantim’s computer-assisted coding software and offer an integrated package to providers implementing the ICD-10 code sets. Nuance earlier in 2012 acquired medical transcription firm Transcend Services, picking up more than 320 small to mid-sized hospitals and delivery system, a market that Quantim also serves. It now can cross sell additional services to these newer clients as well as longstanding customers.

QuadraMed will retain its other software products, covering access and identity management such as a master patient index, self-service portals and kiosks, care management and revenue cycle management applications, and an inpatient electronic health records system.

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