Premier Inc. (PINC), a leading healthcare improvement company, signed an agreement to acquire Stanson Health, a software-as-a-service (SaaS)-based provider of clinical decision support (CDS) tools that are integrated directly into the electronic health record (EHR) workflow, providing real-time, patient-specific best practices at the point of care.
In addition, Stanson is also developing a prior authorization product that, once finalized, is expected to provide near real-time prior authorization decisions for medical and pharmacy benefits. This is expected to save providers and payers time and expense while enhancing patient and provider satisfaction.
“This strategically significant acquisition complements our core data and analytics offerings and enables us to expand the reach of our solutions directly to the point of care, where they can have the biggest impact,” said Susan DeVore, President and CEO of Premier. “Stanson’s CDS tools will be key to realize Premier’s vision of an enterprise analytics and performance improvement platform, allowing us to provide evidence-based recommendations that improve quality and safety, while avoiding treatments that do not add value. At the same time, Stanson is developing tools that we believe will provide an attractive option to improve the burdensome process of prior authorization, which today is incredibly frustrating for both patients and providers.”
Ranked #1 by KLAS as the top provider of clinical process improvement solutions, Stanson’s CDS capabilities are driven by evidence-based, healthcare provider-designed logic that provides precise, real-time information. Stanson’s CDS only fires when the patient meets a specific profile, offering specific recommendations that are directly relevant to the physician’s or other provider’s decision. Stanson CDS and analytics can be integrated as an application on the major EHR platforms, including Epic, Cerner and Athenahealth, to greatly improve the EHR’s overall value and functionality. Stanson also supports compliance with the Protecting Access to Medicare Act (PAMA), which will require CDS to justify use of advanced imaging services (i.e., CT, MR, NM and PET scans), starting in January 2021, in order to receive Medicare Part B reimbursement.
Founded in 2013 by Cedars-Sinai Medical Center and Dr. Weingarten, the former CEO of Zynx Health, Stanson solutions are currently active in approximately 300 healthcare facilities.
“As healthcare delivery grows more complex and pushes providers to assume greater risk for total costs and quality outcomes, organizations are looking for solutions to help them make the best possible healthcare decisions,” said Stanson Health co-founder Dr. Scott Weingarten, MD, MPH. “Stanson’s combination with Premier will help us expand and scale CDS to reach more physicians, and enable providers to standardize care delivery around optimal and evidence-based healthcare processes.”
Premier will utilize existing cash on hand to fund the $51.5 million acquisition. The acquisition also provides for an additional earn-out opportunity of up to $15 million based on certain product delivery and revenue targets. The acquisition is not expected to materially impact earnings in FY2019, and is expected to be modestly accretive in future years. The transaction is expected to close in Premier's fiscal second quarter ending Dec. 31, 2018, subject to customary closing conditions.
The Stanson Health team is expected to continue to operate remotely or out of existing headquarter offices in Southern California. Dr. Weingarten will continue to lead the business unit, reporting to Leigh Anderson, President of Premier’s Performance Services segment.
About Premier Inc.: Premier Inc. (PINC) is a leading healthcare improvement company, uniting an alliance of approximately 4,000 U.S. hospitals and health systems and approximately 165,000 other providers and organizations to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier enables better care and outcomes at a lower cost. Premier plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier’s news and investor sites on www.premierinc.com; as well as Twitter, Facebook, LinkedIn, YouTube, Instagram, and Premier’s blog for more information about the company.