The acquisition of Picis, Inc., is expected to extend Ingenix’s capabilities into the rapidly growing high-acuity information systems market.
Health intelligence and analytics provider Ingenix announced Thursday that it has agreed to acquire Picis, Inc., a Wakefield, Massachusetts-based company that provides health information solutions to hospitals.
The financial terms of the deal were not disclosed. The transaction is subject to regulatory approval and is expected to close during the third quarter of 2010.
Picis provides enterprise software to high-acuity areas of hospitals, which include the emergency department, surgical suites, and intensive care units. Picis’ systems are now installed in more than 1,800 hospitals in 19 countries throughout North America, Europe, and Asia.
Picis’ primary offering is its CareSuite, a set of software and services that generates electronic records for high-acuity patients and automates the documentation of vital signs and other key data. The CareSuite also allows that data to be shared with other electronic health and medical record products. The CareSuite includes an additional component that automates key elements of the revenue cycle for high-acuity areas of a hospital.
The acquisition will extend Ingenix’s capabilities into the high-acuity information systems market—a market that’s been growing at nearly twice the rate of the overall health IT market over the past several years, according to Ingenix.
Picis has experienced a compound annual growth rate of more than 50 percent annually since 2001 and grew revenues even during the 2009 downturn when many companies were struggling, according to Ingenix.
Following the acquisition, Ingenix will keep Picis’ primary operations in Wakefield, Massachusetts, and maintain its other offices in the United States and Europe.
Ingenix is a wholly owned subsidiary of Minnetonka-based UnitedHealth Group, Minnesota’s largest public company based on its 2009 revenue of $87.1 billion. Eden Prairie-based Ingenix helps clients solve problems in health care with its data, software, services, and consulting expertise.
“This marriage of ‘health intelligence’ and clinical workflow will provide substantial value to patients, physicians, and hospitals,” Ingenix CEO Andy Slavitt said in a statement about the acquisition. “Tremendous opportunities exist to use information and technology to modernize the high-acuity area, delivering better care and greater efficiency to these high-volume areas of the hospital where resource consumption is often at its greatest.”
—Christa Meland
(cmeland@tcbmag.com)