HEALTHCARE NEWS FLASH August 01, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 11 Strategy .............................................................................................................................. 17
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Sales & Marketing Harvard Pilgrim HealthCare Selling Small-Group Plans On Chamber Insurance Trust July 28, 2014 | Hartford Courant http://articles.courant.com/2014-07-28/business/hc-harvard-pilgrim-chamber-insurance-trust20140728_1_health-insurance-chamber-insurance-trust-small-group-health-plans Harvard Pilgrim HealthCare announced Monday it is now selling small-group health plans through the Chamber Insurance Trust, an alliance of about 60 chambers of commerce in Connecticut. The Chamber Insurance Trust combines the buying power of more than 10,000 businesses that are members of their local chamber of commerce when buying medical coverage for workers. The trust had offered businesses options from only one insurer: Aetna. That is still the case for individual health plans, said Aaron Glick, counsel and director of business development. The trust, or CIT, now offers small-group plans of both Aetna and Harvard Pilgrim. An announcement is expected soon about a third insurer, Glick said. "Health insurance has become a more consumer oriented product more than ever before where consumers really have to understand what it is they're buying," Glick said. Employees are taking on a greater share of the cost of their coverage, and that is a factor in why workers are paying more attention to the type of medical insurance they buy. JoAnn Ryan, CEO of the Northwest Connecticut's Chamber of Commerce and chair of the CIT Leadership Cabinet, said in a statement: "The more choice we can offer to our members, the better. Our goal is to give employers a strong array of health insurance products from leading health insurance companies so that they can choose the plans that work best for their employees."
ISelect signs deal with United Healthcare on PPO products July 28, 2014 | Crain's Detroit Business http://www.crainsdetroit.com/article/20140727/NEWS/307279964/iselect-signs-deal-withunited-healthcare-on-ppo-products ISelect Custom Benefits Store, a Royal Oak-based private health insurance exchange, has signed a deal with United Healthcare Group to sell seven PPO health insurance products on its exchange in Michigan and several other states, iSelect announced. United Healthcare will offer at least seven PPO options through iSelect and its certified agents to employers with 100 or more workers. The plans will be available starting Oct. 1.
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As a private health insurance exchange, iSelect offers small businesses from 10 to 10,000 employees a defined-contribution approach to health benefits that can help companies reduce long-term health care costs. ISelect already has preferred-vendor relationships with Detroit-based Health Alliance Plan and Grand Rapids-based Priority Health.
Is Cerner eyeing a Siemens acquisition? July 24, 2014 | Healthcare IT News http://www.healthcareitnews.com/news/cerner-eyeing-siemens-acquisition (Siemens) Healthcare will be separately managed in the future.' There's talk of an acquisition that just might change the landscape of the health IT market. According to reports, Cerner may be exploring the possibility of acquiring the health IT division of Siemens Healthcare, which was among the EHR vendors that failed to increase marketshare in 2013. EHR behemoth Cerner, however, with 14,200 employees worldwide, did manage to increase marketshare in 2013 and saw GAAP net earnings stand at $398.4 million, up from $397.2 million in 2012. The company's 2013 bookings also reached a record high, at $3.77 billion, up 20 percent from 2012. Siemens Healthcare, which includes four divisions -- imaging and therapy systems; clinical products; diagnostics; and customer solutions -- saw $2.8 billion in 2013 profits, up significantly from the year before. Officials say the increases were due to lower charges associated with its Agenda 2013 initiative, a two-year long project aimed at boosting the company's competitiveness. Siemens officials are aware of the acquisition speculations, but "as a matter of company policy, we cannot comment on market rumors," said a Siemens spokesperson, in an emailed statement. In its Q2 2014 interim report, Siemens officials, however, did indicate big changes were coming. "As of Oct. 1, 2014, the organization will be streamlined by eliminating the sector level and bundling business into nine divisions instead of the current 16. Healthcare will be separately managed in the future," the report read. A Siemens spokesperson said the slated change of the healthcare arm being managed as a "company within a company" will result in "greater entrepreneurial independence." Siemens Healthcare, which includes a health IT division known as "customer solutions," currently employs some 52,000 people globally. Siemens' entire workforce totals more than 108,000. "The trend toward consolidation in the Sector's (healthcare) industry continues," officials wrote in the company's 2013 financial report. "Competition among the leading companies in the field is strong, including with respect to price." A Cerner spokesperson also declined to comment on the talk of an acquisition.
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Of all hospitals attesting to meaningful use, just slightly more than 10 percent of unique hospitals attested using a Cerner platform. Contrastingly, only about 4 percent of hospitals used a Siemens EHR to attest. Regarding eligible professionals, only 12 unique eligible providers have used Siemens to attest, representing .004 percent of the market. Cerner, however, held approximately 3 percent of the marketshare with eligible providers, as some 9,700 unique eligible professionals attested to meaningful use with a Cerner platform (out of 293,000 EPs included in an HHS MU data set.)
Kindred Prepared To Top Up Offer To Acquire Gentiva July 22, 2014 | Bidness Etc http://www.bidnessetc.com/23027-kindred-prepared-to-top-up-offer-to-acquire-gentiva/ Kindred increased its buyout bid to Gentiva from $16 to $17.25 in order to match a competing offer from an unnamed investor Kindred Healthcare, Inc. (KND) sent out a letter to the board of Gentiva Health Services, Inc. (GTIV) in reply to an announcement made by Gentiva on July 17 that it has an offer from another investor. Kindred is ready to increase its bid by $1.25 and match the $17.25 offer made by the undisclosed third party, to acquire 100% of the home-health-care provider. Kindred is willing to structure a buyout transaction for Gentiva in which the shareholders can either receive cash or cash-and-stock in exchange of their shareholding, and become a part of the significant growth potential the combined entity offers. Kindred is prepared to increase its offer if Gentiva agrees to engage in discussions, and allows the healthcare company to enter into “stand still” and “confidentiality agreements” to be able to gauge the combined companies’ potential. Gentiva has agreed to review and assess Kindred’s proposal in the meantime. This is the fourth bid made by Kindred to acquire the provider of skilled nursing and health services. Last week, Gentiva rejected Kindred’s bid of $16, and stated that it received a $634.2 million buyout offer from an undisclosed party. In the fourth bid, Kindred offered to acquire a 14.9% stake in Gentiva to ensure it does not trigger the poison pill threshold of 15%. After acquiring Atlanta-based Gentiva, Kindred will be able to provide a wide range of care-based services to its patients in 47 states. Gentiva’s management has been insisting from the beginning that Kindred’s buyout bid undervalues the company. However, Kindred expects that the recent pershare bid of $17.25 will raise Gentiva’s interest to further discuss the offer.
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Montefiore Medical Center and UnitedHealthcare Collaborate to Enhance Care, Improve Outcomes and Reduce Costs July 21, 2014 | Market Watch http://www.marketwatch.com/story/montefiore-medical-center-and-unitedhealthcarecollaborate-to-enhance-care-improve-outcomes-and-reduce-costs-2014-0721?reflink=MW_news_stmp More than 9,000 UnitedHealthcare employer-sponsored health plan participants in New York to have access to improved care coordination and enhanced health services Montefiore Medical Center is collaborating with UnitedHealthcare to provide enhanced, coordinated care to more than 9,000 New York residents enrolled in UnitedHealthcare’s employer-sponsored health plans, including Oxford Health-branded plans. The collaboration focuses on prevention, improved coordination and well-managed care. Montefiore will share in the generated savings with UnitedHealthcare and reinvest those funds back into the system to ensure patients continue to receive the right care at the right time in the right place. “We pride ourselves on our ability to provide best-in-class coordinated and compassionate care when and where people need it most through Montefiore’s extensive network of employed and affiliated community-based, private practice physicians,” said Stephen Rosenthal, vice president, network management, Montefiore. “Working with UnitedHealthcare enhances our ability to address patients’ complex medical needs and allows for improved outcomes and patient satisfaction while making health care more affordable.” For nearly 20 years, Montefiore has provided innovative services and interventions to help patients manage their care and achieve optimal health. Montefiore currently manages the care of nearly 300,000 people, and the medical center was designated as the only Pioneer Accountable Care Organization (ACO) in New York by the Centers for Medicare & Medicaid Services’ Innovation Center. Montefiore achieved the highest performance in year one among the 32 Pioneer ACOs through increased patient engagement and coordination; preventive, patient-centered care; and collaborative efforts with the practicing physician community. UnitedHealthcare employer-sponsored plan participants who currently receive care from Montefiore-affiliated care providers will not have to do anything differently to receive the benefits of these agreements, which include enhanced care coordination and follow-up. “UnitedHealthcare continues to work with care providers statewide to help enhance health services and improve coordination of care for patients,” said Michael McGuire, CEO, UnitedHealthcare of New York and New Jersey. “We believe our collaboration with Montefiore Medical Center will deliver enhanced quality, better outcomes and greater efficiency for our health plan customers in New York.” Today, more than $30 billion of UnitedHealthcare’s annual physician and hospital reimbursements are tied to accountable care programs, centers of excellence and performance-based programs. The company projects this will reach $65 billion by 2018.
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Finance Aetna, Geisinger Health System sign contract allowing in-network access July 29, 2014 | Becker's Hospital Review http://www.beckershospitalreview.com/hospital-transactions-and-valuation/aetna-geisingerhealth-system-sign-contract-allowing-in-network-access.html Health insurer Aetna and Danville, Pa.-based Geisinger Health System have signed a five-year contract that allows Aetna members to receive in-network access at all of Geisinger's facilities in Pennsylvania. Under the agreement, those with commercial plans through Aetna or Coventry, which Aetna acquired in 2013, will receive in-network access to Geisinger's six acute care hospitals in Pennsylvania as well as Geisinger physician clinics, ambulatory surgery centers, skilled nursing facilities and ancillary home health and hospice services. "We are pleased to finalize this agreement so people with Aetna and Coventry insurance coverage can receive in-network healthcare services throughout Geisinger Health System," said David Friel, vice president of third party contracting for Geisinger, in a news release.
Tenet Healthcare, UnitedHealthcare Enter Multi-Year Agreement July 29, 2014 | RTT News http://www.rttnews.com/2358245/tenet-healthcare-unitedhealthcare-enter-multi-yearagreement-quick-facts.aspx Tenet Healthcare Corp. (THC: Quote) and UnitedHealthcare, a UnitedHealth Group company (UNH: Quote), have concluded a new, three-year agreement providing United Healthcare's Commercial and Medicare Advantage members with in-network access to Tenet's 79 hospitals, 193 outpatient centers and over 1,800 employed physicians country-wide. The new agreement is effective August 1, 2014. With this deal, Tenet has completed the renegotiation of all contracts with national commercial payers to include every former Vanguard facility and employed physician. "This agreement provides consumers uninterrupted access to quality care in their local communities," said Dan Rosenthal, president of UnitedHealthcare Networks. "We are pleased to renew this national contract with Tenet, which offers our members access to providers focused on driving care improvements and offers competitive reimbursement rates, a portion of which, importantly, rewards Tenet for achieving certain quality measures," he added.
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Standard Register Healthcare Partners with CareSource to Enhance Information Channels for Consumers July 29, 2014 | WhatTheyThink http://whattheythink.com/news/69635-standard-register-healthcare-partners-caresourceenhance-information-channels-consumers/ Standard Register Healthcare, a leader in managing health-related information and communications, announced it has signed a three-year, multimillion dollar contract with CareSource for the management of communication workflows and production of external information.Dayton-based CareSource is a nonprofit health plan and one of the nation's largest Managed Medicaid plans in the country with more than 1.2 million members in Ohioand Kentucky. Leveraging its software, Standard Register will manage CareSource's information production process through their on-site print centers and partnerships. The Company will partner with local, regional and national suppliers to create time-sensitive member communications and regulated material. Together, Standard Register's data-driven process and high-speed ink jet equipment will enable CareSource to create member-specific enrollment materials and communications quickly and accurately in a secure manner. "CareSource has experienced unprecedented growth in recent years giving way to innovative opportunities for improved efficiency and effectiveness of our communication processes with members," said Pamela Morris, president and CEO of CareSource. "We look to Standard Register to provide technology-enabled solutions that will support member preferences and our growth initiatives." "Improving outcomes by empowering people with information is the vision of Standard Register's Healthcare business," said president and CEO Joseph P. Morgan, Jr. "We are excited that two Dayton-based companies will join forces to improve the access of health care information." Standard Register will work closely with CareSource teams to expedite the transition process, which will include information and data sharing, inventory assessments and production schedules.
Comanche County Memorial Hospital Selects Merge Healthcare for Enterprise-Wide Imaging and Archiving to Improve Disaster Recovery and Operational Workflow July 28, 2014 | Nasdaq http://www.nasdaq.com/press-release/comanche-county-memorial-hospital-selects-mergehealthcare-for-enterprisewide-imaging-and-archivin-20140728-00179 Partnership Provides Vendor-Neutral Archive (VNA) and Image Interoperability for Seamless Integration of Patient Data, Meaningful Use 2 Requirements and HIE Compatibility
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Merge Healthcare Incorporated (Nasdaq:MRGE), a leading provider of innovative enterprise imaging, interoperability and clinical systems that seek to advance healthcare, today announced Comanche County Memorial Hospital, a non-profit, acute care facility and the largest hospital in western Oklahoma, has selected Merge's vendor-neutral archive (VNA) and image viewing and sharing solutions for improved disaster recovery and operational workflow. The partnership will also enable a seamless flow of data to meet Meaningful Use 2 (MU2) requirements for the exchange of images, support health information exchange (HIE), as well as enhance the patient experience. "We previously utilized stand-alone PACS with limited archiving capabilities and minimal disaster recovery assurance, which was of major concern with our location in tornado alley," said James Wellman, Senior Director of Information Technology at Comanche County Memorial Hospital. "By implementing a VNA with a secondary image back-up system, we've secured our disaster recovery efforts and created a unified approach for various departments, including radiology and cardiology. We value Merge not only as a partner for our immediate needs, but we trust they will continue to provide ongoing innovative solutions for our unique environment at a cost-effective price." While initially looking for a solution to better manage image archiving, Comanche County was presented with the opportunity to implement a broader enterprise-wide imaging strategy. Merge's image access and sharing solutions will build a foundation for the future of interoperability, enable HIE and enhance referral networks at a reduced cost. Ultimately, Comanche County chose Merge to support their goals and will implement the following interoperability solutions for enterprise imaging and the consolidation of their imaging infrastructure, including: •
iConnect® Enterprise Archive, Merge's VNA, will enable providers to access current and historical critical patient information for enhanced patient care and improve disaster recovery capacity.
•
iConnect® Access, a platform that combines universal viewing and image sharing into a single enterprise solution, will transport and view critical patient data from any browser-based device.
"Merge is honored to work with Comanche County in support of their strong enterprise-wide imaging strategy that is focused on disaster recovery for their community," said Justin Dearborn, CEO at Merge Healthcare. "Comanche County is a prime example of a forward-thinking organization capitalizing on their unique needs to achieve interoperability for enhanced referrals, reduced costs and better patient care."
Wheeling Hospital Renews Allscripts Healthcare's Sunrise EHR July 16, 2014 | Zacks http://www.zacks.com/stock/news/140248/Wheeling-Hospital-Renews-Allscripts-HealthcaresSunrise-EHR Extending its relationship with Allscripts Healthcare Solutions, Inc., U.S.-based Wheeling Hospital renewed its contract to use Allscripts Sunrise Electronic Health Record (EHR) system through 2021. Under the renewed contract, Wheeling Hospital also added Allscripts Sunrise Financial Manager to its suite of Allscripts open platform solutions. Additionally, Allscripts and Wheeling Hospital entered into a partnership under which the former will provide education, roadmaps, audits and surveys to the hospital to build processes and programs.
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The rationale behind this collaboration is to enable Wheeling Hospital to achieve the HIMSS Analytics Electronic Medical Record Adoption Model (EMRAM) Stage 7 Certification. EMRAM is a methodology that measures the progress and impact of EHR systems on organizations in the HIMSS Analytics Database. Allscripts Sunrise EHR is a comprehensive suite of fully integrated population health capabilities comprising inpatient, ambulatory, emergency care and surgical care solutions. It provides innovative Computerized Provider Order Entry (CPOE) and features, including integrated pharmacy, knowledgebased medication administration and patient portal solutions. Allscripts Sunrise Financial Manager offers a wide-range of financial solutions for revenue management in hospitals and health systems. Apart from providing revenue cycle functionality, Allscripts Sunrise Financial Manager also offers a strong foundation that helps enterprises to expand and adapt to new reimbursement and care models such as accountable care organizations (ACOs). Wheeling Hospital also selected Allscripts FollowMyHealth patient engagement platform to allow convenient online access to health information. The portal, which integrates all systems across the enterprise, enables patients or family members to fill forms, view test results, refill prescriptions, request appointments and communicate with physicians. By leveraging Allscripts Sunrise EHR and several of its open platform solutions, Wheeling Hospital intends to meet regulatory requirements, manage population health and improve patient outcomes across all its facilities. Allscripts Sunrise platform is gaining increasing popularity among healthcare providers and hospitals. Since Jan 2013, there have been over 20 new Allscripts Sunrise commitments at existing client facilities or at new organizations globally. Last week, NY-based Memorial Sloan Kettering Cancer Centre installed Allscripts dbMotion population health analytics solution at its facility and also extended its use of the Allscripts Sunrise EHR platform. In the same month, Children’s of Alabama, a Birmingham-based pediatric medical center, extended its commitment to the Allscripts Sunrise EHR through 2023. In this era of enhanced interoperability and connectivity, Allscripts continues to empower healthcare providers with its innovative and integrated population health management solutions. With its consistent efforts, Allscripts aims to drive positive patient outcomes and ultimately transform the healthcare industry.
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Technology IBM powers Healthcare sciences publisher PLM for mobile apps July 28, 2014 | Infotech Lead http://www.infotechlead.com/2014/07/28/ibm-powers-healthcare-sciences-publisher-plmmobile-apps-24473 IBM said that PLM, a Latin American healthcare sciences publisher, has launched as many as 35 mobile apps – using IBM MobileFirst application development portfolio — to provide information on conditions such as cancer and heart disease. Healthcare providers using a mobile device can now access the most up-to-date information to deliver better patient care, said IBM. According to a recent report, 9 in 10 healthcare providers will use smartphones in a professional capacity this year. The main reason physicians use smartphones is to access drug information. PLM used the IBM MobileFirst application development portfolio to convert its medical reference guides into 35 mobile apps to deliver access to information about diseases, treatments and medicines, enabling clinicians to improve patient care. Doctors and health specialists have based millions of treatment decisions on the information in PLM’s database that includes dosing information for different patient characteristics such as age and weight, and highlights potential interactions between prescriptions. PLM selected IBM Worklight for app development and security capabilities. This apart, IBM has enabled PLM to standardize its mobile initiatives and improve the user experience across multiple devices and operating systems. PLM has reduced mobile app development costs, decreased time-to-market from months to weeks, and influenced changes in how healthcare providers work. At present, PLM is planning to use the IBM MobileFirst portfolio to provide clinicians with access to healthcare analytics via mobile devices. Additionally, with better insight into how the data is being accessed and applied by clinicians, PLM will be able to further streamline communications and content, and expand its business to new regions. For example, PLM will be able to send alerts to users about the availability of new medicines based on consulting patterns.
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Orange, TAPcheck JV Introduces End-to-End Healthcare IoT Service July 28, 2014 | PCC Mobile Broadband http://www.policychargingcontrol.com/services-innovations/1954-orange-tapcheck-jvintroduces-end-to-end-healthcare-iot-service One of the sectors that is set to benefit most from Internet of Things (IoT) is the health sector, where connected medical devices and machines will enable the real-time transfer of information, enabling medical and healthcare practioners to benefit from access to a wide range of data, both current and historical, that can be used for research, treatment and prevention. According to TAPcheck速 , a company that produces and distributes healthcare and wellness products, the integration and hosting of its healthcare and wellness applications on the Orange Business Services Flexible Computing platform will enable its equipments and devices to be 'connected' to the network. Orange Business Service, a brand under the world's leading telecommunications operator Orange, provides global IT and telecommunications services to multinational companies. This will mean that 'readings' from their equipment can now be automatically sent over the network to a central database and then be accessed from the internet or mobile devices using special applications. The partnership between medical equipment manufacturers and service providers is part of the new wave of collaborative initiatives between manufacturers and service providers to enable more products and machines to have connectivity to the network. The connected car is one such example, where service providers are working with auto-makers to enable latest car models to have built-in connection that provides the driver access to the internet and various apps while driving. TAPcheck's collaboration with Orange will see the roll out of an end-to-end service that can be used by hospitals and also the public in France, where Orange is based and across other European countries. By subscribing to the service, equipments such as glucose monitors, tensiometers, thermometers, scales and activity sensors will be connected, enabling healthcare professionals to access patients' personal data including data uploaded during medical aftercare via online applications, said TAPcheck.
Smartwatches will revolutionise treatment for chronic conditions July 25, 2014 | The Guardian http://www.theguardian.com/healthcare-network/2014/jul/25/smartwatches-revolutionisetreatment-chronic-conditions Google, Apple, and Samsung are racing to develop wearable technology that could be used to to monitor and track personal health and diagnose disease
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In 2007, editors of Wired magazine coined the phrase "Quantified Self". They predicted a world where people would seek self-knowledge through self-monitoring. That world is now a reality with the advancements in wearable technology, specifically smartwatches and their biosensors. Health and technology are converging to become ubiquitous in patients' and physicians' lives. This intersection of health and technology is changing how long-term chronic conditions can be monitored and treated. Google, Apple, and Samsung are racing to develop devices and platforms that track, aggregate and monitor a wide range of biometrics. Exponential growth In 1972, the first digital watch was created; it could store 24 digits – a first in user programmable memory. Today's smartwatches can monitor and store fitness statistics, check vital signs and even remind you to take medication. Smartwatches have explosive potential in the healthcare space thanks to their sensors, ability to sync to mobile health platforms and transmit sensor data to the cloud. Smartwatches will start to go beyond just monitoring and tracking personal wellness and will help to predict and diagnose disease. According to IMS Research, the wearables market is poised to grow from 14m devices shipped in 2011 to as many as 171m units shipped by 2016. And in a more recent estimate, ABI Research foresees the wearables market at 485m annual devices shipped by 2018. The urge for wearables and smartwatches is fuelled by the more than 75% of all patients expected to use digital services in the future. And according to McKinsey, it's a myth that only young people want to use digital services. Its research shows that patients from all age groups are willing to use digital services for healthcare. More specifically, according to BI Intelligence, 35% of consumers are interested in smart sensorenabled wrist wear and 40% are interested in medical devices that transmit data. Nikefuel band, fitbit and jawbone were some of the early activity trackers, as well as platform services such as Tictrac that came on the scene to aggregate health data into dashboards for users. The dashboard showcases such information as activity, heart rate and sleep. The next generation of smartwatches will employ additional technology including the accelerometer, magnetometer, gyroscope, compass, heart-rate monitor, altimeter and an ambient light sensor, to name a few. Inside their wearables, Samsung and Google are already detecting body temperature as well as location, and integrating voice commands. Apple's vision is to find a way to load more into its new devices and platforms. Google Fit/Google Wear Google announced and introduced the Google Fit platform at its 2014 Google I/O conference. Its focus is to aggregate health data from wearables, trackers and health apps and put it in one central repository. This data will be aggregated through open APIs which allow sharing of information. Google fit may also be built into Android Wear – its operating system for smartwatches. Apple iWatch/Healthkit
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All indications point towards Apple putting a huge push behind digital health and the forthcoming iWatch/Healthkit. Analysts are predicting that this could be the next iPhone/iPad. According to MacRumors, the iWatch will deliver an impressive number of advanced health-related capabilities. The iWatch is said to include 10 different sensors to track health and fitness, providing a comprehensive picture of health and making the health-tracking experience far more accessible to the broader population. The iWatch in conjunction with healthkit will aggregate as many as 50 to 60 different biometrics, providing statistical analysis, graphs and trends. Samsung Simband/Sami Samsung has already invited developers to help to create hardware and software for its new health initiative, the Samsung Simband/Sami. Simband's proof of concept sensors include photo sensing, pulse, EKG and blood data (eg blood oxygen levels and blood flow), respiration, galcinic skin response (GSR) and body temperature. All this information can then be integrated into its cloudbased data platform Sami. Self-tracking is becoming part of the overall treatment paradigm. Patients are sharing and monitoring health data more than ever before with their clinicians. And the percentage of physicians who report patients sharing their health measurement data has already hit an all-time high. Physicians all around the world are "prescribing" mhealth apps. Similarly, smartwatches will be the natural evolution in patients taking on a more active role with their health and helping physicians to diagnose illness and perhaps even curb chronic conditions through monitoring real-time biometric data. Smartwatches are going to be essential to the future of health and wellness.
Humana, Holzer Health System enter into accountable care agreement July 17, 2014 | Becker's Hospital Review http://www.beckershospitalreview.com/accountable-care-organizations/humana-holzer-healthsystem-enter-into-accountable-care-agreement.html Gallipolis, Ohio-based Holzer Health System and Louisville, Ky.-based Humana have entered into an accountable care agreement aimed at improving health outcomes of Humana's Medicare Advantage members. Under the agreement, Holzer — a multi-discipline healthcare system with clinical locations throughout southeaster Ohio and West Virginia — will provide coordinated care to Humana's nearly 10,000 Medicare Advantage members within Holzer's service area. The organizations seek to improve quality of care while cutting healthcare costs. To help achieve there goal, Holzer and Humana will use tools, such as predictive analytics and wellness programs, to assist in improving health outcomes, according to a news release.
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Health IT attracting huge investments July 16, 2014 | Healthcare IT News http://www.healthcareitnews.com/news/health-it-attracting-huge-investments Sector has first $1B quarter for VC, with mHealth, practice management, analytics attracting most attention. Venture capital funding for health information technology surpassed $1 billion for the first time in Q2 2014 – far surpassed, in fact, with $1.8 billion raised in 161 deals, more than doubling the $861 million raised in the previous quarter. With 10 funding deals for more than $50 million each, this was the most lucrative VC quarter yet, according to Mercom Capital Group. In fact, the $2.6 billion raised so far this year has already exceeded the $2.2 billion raised in all of 2013. "It was a quarter of several milestones," said Mercom CEO Raj Prabhu, in a press statement. "It was the first billion dollar fundraising quarter for the sector which has now raised almost $7 billion in venture funding since 2010. Healthcare IT funding rounds have now crossed 1,000." Notably, he said, mobile health companies "continue to outraise other technologies," having now raked in more than $1 billion since 2010. Practice-centric companies garnered 61 percent of all investments in Q2, with $1.1 billion across 61 deals – especially in technology related to practice management, with $220 million in eight deals; analytics at $204 million in nine deals; and population health management raking in $144 million in four deals. Consumer-facing technology, meanwhile, attracted $678 million in 100 deals, with most going to mobile health ($401 million across 45 deals). Within mHealth, $129 million went to companies developing apps and $226 million went to firms that make wearables. Personal health companies received $115 million; scheduling, rating and shopping applications got $61 million. The top VC deals over $100 million in Q2 were $135 million raised by NantHealth; $130 million raised by Flatiron Health; $125 million raised by Alignment Healthcare and the $120 million raised by Proteus Digital Health. As for mergers and acquisitions, there were a record number of M&A transactions in healthcare IT, according to Mercom. Health information management companies saw the most activity, with 20 transactions, followed by revenue cycle management and service providers with 11 transactions each, and mobile health and personal health companies with six transactions each. Of the top M&A transactions, the biggest was the $550 million leveraged buyout of ABILITY Network, a provider of Web-based workflow solutions that aid clinical and administrative tasks for acute and post-acute healthcare providers, by Summit Partners, a growth equity investment firm.
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This was followed by the $532.5 million acquisition of Evolution1 by WEX. St. Jude Medical, a medical device company, acquired privately held CardioMEMS, provider of a wireless sensing and communication technology designed to improve management of chronic cardiovascular diseases, for nearly $450 million. Other top disclosed transactions were the $225 million acquisition of ISG Holdings by Xerox and the $150 million acquisition of Corventis by Medtronic. There were two IPOs in Q2 for health IT: IMS Health raised $1.3 billion through its offering, and Imprivata launched an IPO that raised $86.3 million.
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Strategy Athenahealth, Henry Schein target CHCs July 28, 2014 | Healthcare IT News http://www.healthcareitnews.com/news/athenahealth-henry-schein-target-chcs A positive step for FQHCs like ours, that are looking to find ways to streamline processes and reduce unnecessary work' Expanding on a partnership announced this past spring, athenahealth and Henry Schein will integrate their respective technologies to better enable community health centers to meet reporting requirements. The project will see athenahealth's athenaNet platform integrated with Henry Schein's Dentrix Enterprise electronic dental record, meant to facilitate Uniform Data System reporting, a requirement for CHCs, including federally qualified health centers, or FQHCs. Officials say the integration of the athenaNet and Dentrix Enterprise platforms will automate the UDS reporting process, ensuring accurate, complete UDS reports, without the need for manual and time-consuming reconciliation between separate systems. "Value-based care models, like the FQHC model, require substantial documentation and reporting; our goal is to automate these processes wherever possible to save valuable time and reduce cost for our clients," said athenahealth chairman and CEO Jonathan Bush in a press statement. Through this partnership, "we are enabling our CHC and FQHC clients to work smarter and more efficiently as they pursue quality care, better health and lower costs for their patients," he said. "Dentrix Enterprise already integrates with many medical EHR vendors through HL7 interface," added Kevin Bunker, President, Henry Schein North America Dental Practice Solutions, in a prepared statement. "Our integration with athenahealth will provide CHC and FQHC customers with significant value through a more seamless exchange of information for customers that use both systems." A pilot program to create standard documentation and efficient processes will be undertaken by Pennsylvania-based Family First Health and Maryland-based Three Lower Counties Community Services. "Managing the reporting demands as an FQHC can be a complex and time-consuming process," said Jenni Black, chief information officer, Family First Health, in a statement. "This effort is not only going to result in a substantial cost savings for our practice, but also will enable us to put more of our valuable resources toward patient care, where we can truly make a difference in our community."
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"The pairing of athenaNet and Dentrix Enterprise is a positive step for FQHCs like ours, that are looking to find ways to streamline processes and reduce unnecessary work," added Susanne Gray, RN, CEO and chief operations officer of Three Lower Countries Community Services.
Ascension, Dignity, Tenet to Enter Into Joint Venture July 23, 2014 | Becker's Hospital Review http://www.beckershospitalreview.com/hospital-transactions-and-valuation/ascension-dignitytenet-to-enter-into-joint-venture.html Carondelet Health Network, based in Tucson, Ariz., and its parent company, St. Louis-based Ascension Health, have signed a nonbinding letter of intent with San Francisco-based Dignity Health and a subsidiary of Dallas-based Tenet Healthcare Corp. to create a joint venture. The joint venture — in which Ascension would maintain a minority interest — would own and operate Carondelet, according to a news release. Under the agreement, Tenet would be the majority partner and would hold management responsibility for all operations of Carondelet's assets, although the joint venture would maintain Carondelet's heritage and identity. The joint venture will connect Carondelet to a regional healthcare system of hospitals owned and operated by Dignity and Tenet in the Phoenix area, as well as Tenet and Dignity's accountable care organization, Arizona Care Network. The health systems involved have entered a period of due diligence and are working toward a definitive agreement, according to the release. "We are excited to pursue this relationship with Tenet and Dignity Health," James K. Beckmann, president and CEO of Carondelet, said of the agreement. "Like Carondelet, Tenet and Dignity Health are committed to providing high quality, low cost, person-centered care. This relationship is an opportunity to strengthen those efforts, enhance healthcare across Arizona, and continue Catholic sponsorship of Carondelet."
RadNet Acquires Certain Southern California Imaging Assets From HealthCare Partners, LLC and Signs a Long-Term Capitation Contract With HealthCare Partners Medical Group July 18, 2014 | Nasdaq http://www.nasdaq.com/press-release/radnet-acquires-certain-southern-california-imagingassets-from-healthcare-partners-llc-and-signs--20140718-00093 RadNet, Inc.(Nasdaq:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 250 owned and operated outpatient imaging centers, today reported that effective July 1, 2014, it has acquired certain imaging assets located at eight HealthCare Partners Medical Group facilities. In addition, RadNet has entered into a long-term capitation contract to provide diagnostic imaging services to approximately 65,000 HealthCare Partners Medical Group patients including commercial and managed Medicare and Medicaid enrollees.
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As part of the agreement, RadNet acquired routine imaging assets, including x-ray, mammography and ultrasound equipment, located in eight Southern California HealthCare Partners offices in Santa Ana, Fountain Valley, Huntington Beach, Compton, Downey, Long Beach and Anaheim. RadNet has assumed operations at these locations, which continue to service the routine imaging needs of HealthCare Partners patients. In addition, RadNet's existing facilities, located near these eight offices and convenient to where these HealthCare Partners patients live and work, will offer advanced imaging exams and other services not provided in the eight facilities. In conjunction with the purchase of these imaging assets, RadNet and HealthCare Partners Medical Group have entered into a five-year capitation arrangement under which RadNet will provide, on an exclusive basis, diagnostic imaging services to approximately 65,000 HealthCare Partners patients who HealthCare Partners manages as part of its commercial and managed Medicare and Medicaid programs. RadNet will perform utilization review and aid HealthCare Partners with the establishment of appropriateness and educational criteria related to their imaging needs. Dr. Howard Berger, President and Chief Executive Officer of RadNet, noted, "We are delighted to expand our longstanding relationship with HealthCare Partners. In the past, we have worked with several HealthCare Partners Medical Group sites under capitation arrangements, whereby we have exclusively provided imaging services to significant HealthCare Partners-managed patient populations in Southern California. We appreciate the confidence HealthCare Partners has shown in RadNet by effectively outsourcing its imaging needs to us." "Capitation remains a core part of RadNet's business in California. In a post-reform era, healthcare will continue to migrate towards capitation and other business models whereby efficientlymanaged, high quality providers will assume the risk associated with healthcare utilization and provide patient care for fixed compensation. The traditional fee-for-service model of healthcare has led to the rising cost of health insurance, inefficient providers and over-utilization of care. I am convinced that the capitation model, which is more advanced in California than in most other states, will be an effective model for healthcare reform across the country. RadNet and HealthCare Partners are well positioned to benefit from this trend," added Dr. Berger.
Insurance services firm acquires HealthPocket July 16, 2014 | Healthcare Payer News http://www.healthcarepayernews.com/content/insurance-services-firm-acquires-healthpocket The healthcare tech boom continues, as one of the most-heralded consumer insurance comparison startups was acquired by an insurance services firm hungry for growth. Tampa-based Health Insurance Innovations has purchased HealthPocket, the company beyond the consumer comparison website of the same name, for $32 million in cash and stock. Founded in 2012 by former executives of eHealth Insurance, HealthPocket has had consumers as its primary target, offering the ability to “compare every health insurance plan in one step,� with searches by provider, city and payer, from exchange plans to group policies to Medigap.
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HealthPocket has also come to inform the debate over post-Affordable Care Act health insurance with data-driven studies on premium variation, cost-sharing and provider networks. One study last June found that two of the leading online private exchanges offer fewer options for consumers than the subsidized marketplaces. Health Insurance Innovations says it wants to merge its health plan development, virtualadministration and agent distribution with HealthPocket's “powerful big-data-aggregation” — a “game-changing technology,” as a media release put it, that “for the first time, provides free, oneclick access for consumers to review” on-and off-exchange plans. “The incorporation of HealthPocket into Health Insurance Innovations fits with our growth strategy of continued innovation of unrivaled products and technology solutions within the insurance industry to further enhance our competitive advantage," said Health Insurance Innovations CEO Mike Kosloske in a media release. Kosloske, an insurance industry veteran who’s parents and grandparents ran a health plan administration business, founded Health Insurance Innovations in 2008 — trying to pioneer the “quote, buy, and print" model of online insurance sales — and took the company public in February 2013. “This transaction will significantly increase leads, drive sales and enable us to more swiftly expand into lucrative market adjacencies such as the $402 billion Medicare marketplace, the $35 billion ACA segment of individual major medical and the $220 billion employer-sponsored market,” Kosloske said. HealthPocket.com's founders, former eHealth executives Bruce Telkamp and Sheldon Wang, started the company in part because they thought Americans pay too much for health insurance that doesn’t often fit their needs. Detailed information on available health plans in a given market has tended to be "suppressed," said Telkamp, HealthPocket CEO, in 2012. "Most Americans overpay for health insurance and the plans they choose often don't meet their unique needs,” Telkamp said in a media release. "Having the resources of HII behind us will allow us to further accelerate our technology investment and rapid growth in consumer utilization."
AmSurg Corp. Completes Acquisition of Sheridan Healthcare July 16, 2014 | Market Watch http://www.marketwatch.com/story/amsurg-corp-completes-acquisition-of-sheridan-healthcare2014-07-16 AmSurg Corp. today announced that it has completed its previously announced acquisition of Sheridan Healthcare (the “Sheridan Transaction”), in a cash and stock transaction valued at approximately $2.35 billion. In the Sheridan Transaction, the Company paid approximately $2.1 billion in cash and issued approximately 5.7 million shares of common stock. Through this transaction, AmSurg significantly diversifies its revenue streams and differentiates its competitive market position as both the operator of the largest number of ambulatory surgery centers (ASCs) in the country and a leading provider of outsourced physician services.
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Christopher A. Holden, President and Chief Executive Officer of AmSurg, commented, “This merger enhances AmSurg’s growth profile by increasing our growth opportunities in both the ASC and the outsourced physician services markets. At a time of transformation in the healthcare delivery system, AmSurg is well positioned with a unique and compelling combination of value added services that we expect will strengthen our ability to develop new outsourced physician contracts, health system partnerships and payor relationships and increase the clinical integration of ASC anesthesia.” In addition, AmSurg has entered into a new senior secured credit facility comprised of an $870 million term loan and a $300 million revolving credit facility and has completed its private offering of $1.1 billion aggregate principal amount of 5.625% senior unsecured notes due 2022 (the “Notes”). The net proceeds from the term loan and the Notes offering, together with AmSurg’s recently completed registered public offerings of common stock and 5.25% Mandatory Convertible Preferred Stock, and cash on hand, were used to finance the cash consideration paid to consummate the Sheridan Transaction, as well as repay borrowings under AmSurg’s and Sheridan's existing credit facilities, repay the outstanding balance of Amsurg's senior secured notes due 2020 and pay fees and expenses related to the Sheridan Transaction.
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