NASHVILLE, Tenn.--(BUSINESS WIRE)--
HealthStream (NASDAQ: HSTM), a leading provider of workforce development
and research/patient experience solutions for the healthcare industry,
announced today that it has entered into a definitive agreement to
acquire San Diego-based HealthLine Systems, Inc.
Highlights:
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HealthStream to acquire HealthLine Systems, Inc. for
approximately $88 million in cash
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Acquisition is accretive to the overall financial profile of the
Company, including its earnings, cash flow, and EPS on a pro forma
basis before taking into account GAAP required deferred revenue
write-down of acquired balance
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Adds market-leading products for credentialing, privileging, quality
management, and contact center optimization
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HealthStream senior executive, Michael Sousa, selected to serve as
President for the Company's new healthcare provider credentialing,
privileging, and enrollment business following the acquisition
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Upon the closing of this transaction, HealthStream will maintain HealthLine's
San Diego office
HealthStream's innovative approach to talent management supports
healthcare organizations' need to manage their workforce along multiple
dimensions, including the management of their qualifications and
competencies. The acquisition of HealthLine Systems will enable
HealthStream to provide an expanded solution set for both of these needs.
"With the acquisition of HealthLine Systems and their
market-leading products for credentialing healthcare professionals, we
add a distinctive set of capabilities designed to meet the unique needs
of healthcare organizations," said Robert A. Frist, Jr., Chief Executive
Officer, HealthStream. "By expanding this healthcare-specific area of
our talent management offering, HealthStream will provide a complete
source for provider data management, streamlining the credentialing,
privileging, and provider enrollment processes with powerful task
automation and workflow management tools."
Hospitals are responsible for ensuring the highest quality of care
possible for patients and, therefore, credentialing is mandatory.
Credentialing is the process by which hospitals evaluate and verify the
qualifications of their healthcare providers to ensure that each
practitioner possesses the necessary qualifications to provide medical
services to patients. Once a practitioner is credentialed, the hospital
will assess his/her competence in a specific area of patient care
through a process known as privileging. The Joint Commission requires
ongoing, periodic assessments of practitioners' competencies and
performance for maintaining accreditation. CMS requires credentialing
and privileging for Medicaid and Medicare reimbursement. Hospital and
health systems' Medical Affairs Office generally oversees the
credentialing, privileging, and re-credentialing processes. The
acquisition of HealthLine brings products to HealthStream that
support every step of these processes.
As their flagship product, HealthLine's Echo™ is a leading,
installed or SaaS-based solution to support the credentialing process,
eliminating paper-based tasks, providing primary source verification
sites, helping to meet OPPE/FPPE compliance, improving workflow, and
efficiently accessing hundreds of reports. Joint Commission, NCQA, and
URAC requirements are readily met through the automated credentialing
capabilities of Echo. Over 1,000 healthcare facilities have implemented
and are currently using Echo to manage, validate, and analyze provider
data.
Following the closing of this transaction, HealthStream intends to
combine HealthLine with its SyMed business to form a new,
rebranded company, maintaining offices in San Diego, California and
Brentwood, Tennessee. HealthStream's SyMed OneApp™ application automates
the paper-intensive, time-consuming tasks involved in credentialing and
requesting enrollment in a health insurance network for physicians,
nurse practitioners, and other healthcare providers. Products from HealthLine
will combine with our SyMed solutions to comprise this expanded area of
HealthStream's business.
Michael Sousa will assume the role of President of HealthStream's
credentialing, privileging, and provider enrollment business. Mr. Sousa
has served as HealthStream's Senior Vice President, Business Development
since June 2014. He previously served as HealthStream's Senior Vice
President, Sales where he re-engineered and led the HealthStream sales
teams into an integrated, high-performing sales organization. Earlier in
his HealthStream tenure, he oversaw the design, launch, and growth of
the HealthStream Strategic Accounts Program and HealthStream
Professional Services, two successful initiatives. Prior to
HealthStream, Mr. Sousa held several consulting positions, including as
Associate Partner for IBM Business Consulting Services' healthcare
practice, as well as PWC Consulting and Coopers & Lybrand Consulting.
"The significant expansion of our credentialing and privileging
solutions will add important capabilities to enable healthcare
organizations to streamline administrative processes, ensure compliance,
and optimize clinical outcomes by credentialing, privileging, and
managing providers with enterprise-class functionality and validated,
predictive data," said Mr. Sousa. "I look forward to welcoming HealthLine's
customers and employees to HealthStream."
"HealthLine Systems and HealthStream share a strong passion for
supporting the healthcare workforce with solutions that, in turn,
maximize the quality and delivery of healthcare," said Dan Littrell,
Chief Executive Officer, HealthLine Systems. "Together, a more
comprehensive solution can be offered to the industry as our products
are highly complementary for the healthcare workforce. Moreover,
HealthStream has the positioning—like no one else—to further invest in
and grow our products' market presence. I am excited by the
opportunities that this transaction will bring to our customers."
The closing of the transaction is anticipated to occur in the first
quarter and is subject to customary conditions, including the expiration
or early termination of the waiting period applicable to the transaction
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended. Bailey Southwell & Co. served as an advisor to HealthStream on
the transaction.
About HealthStream
HealthStream (NASDAQ: HSTM) is dedicated to improving patient outcomes
through the development of healthcare organizations' greatest asset:
their people. Our unified suite of software-as-a-service (SaaS)
solutions is contracted by, collectively, over 4.1 million healthcare
employees in the U.S. for workforce development, training & learning
management, talent management, performance assessment, and managing
simulation-based education programs. Our research solutions provide
valuable insight to healthcare providers to meet HCAHPS requirements,
improve the patient experience, engage their workforce, and enhance
physician alignment. Based in Nashville, Tennessee, HealthStream has
additional offices in Laurel, Maryland, Brentwood, Tennessee, Pensacola,
Florida, and Jericho, New York. For more information, visit http://www.healthstream.com
or call 800-933-9293.
This press release contains forward-looking statements that involve
risks and uncertainties regarding HealthStream. Investors are
cautioned that such results or events predicted in these statements may
differ materially from actual future events or results. This information
has been included in reliance on the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that such results or events predicted in these statements may
differ materially from actual future events or results. These
forward-looking statements are based on a variety of assumptions that
may not be realized, and which are subject to significant risks and
uncertainties, including that the acquisition may not be consummated and
that the anticipated financial and strategic benefits of the acquisition
may not be realized, as well as risks and uncertainties referenced from
time to time in the Company's filings with the Securities and Exchange
Commission.
HealthStream
Mollie Condra, Ph.D., 615-301-3237
mollie.condra@healthstream.com
Source: HealthStream
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