In a significant move in the
US health information exchange technology space, health insurer
Aetna is to acquire Medicity for $500m cash.
Medicity provides products
and services that enable health systems, hospitals, physician
practices and health information exchanges to securely access and
exchange health care information.
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“This acquisition will enable
Aetna to offer a set of convenient, easy-to-access technology
solutions for physicians, hospitals and other health care
providers,” said Aetna CEO Mark Bertolini.
Medicity said in a statement
that new federal health reimbursement regulations and reform
mandates are driving the need for convergence of financial and
clinical information to give health care providers a single,
coherent view of a patient’s health.
According to Medicity, its
health information exchange technology reaches more than 760
hospitals, 125,000 physician users and 250,000 end users and
represents the largest installed base of enterprise HIE systems in
the US.
The acquisition has been
given the nod of approval by rating agency AM Best which views it
as a source of business diversification for Aetna and a generator
of unregulated cash flows. Medicity also should provide Aetna with
the opportunity to improve the quality and efficiency of patient
care for its customers, as well as control health care
expenditures, added AM Best.
