Over 2,000 skilled nursing facilities use Providigm’s market-leading
quality management system to achieve better outcomes
NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 10, 2019--
HealthStream (NASDAQ: HSTM), a leading provider of workforce and
provider solutions for the healthcare industry, today announced that it
has acquired Providigm LLC, a Denver-based company focused on quality
assurance and performance improvement in healthcare, primarily serving
skilled nursing facilities. HealthStream adds to its workforce
development solutions with a comprehensive quality management system
created by Providigm, known as “abaqis®,” which is the
leading SaaS-based quality-improvement program adopted by U.S. skilled
nursing facilities.
HealthStream’s commitment to improving the quality of healthcare through
the development of the healthcare workforce extends throughout the
continuum of care, including the 15,600+ skilled nursing facilities in
the U.S. and the 1.66 million employees working in them. New federal
requirements by CMS are driving the need for innovative solutions to
better manage quality and performance improvement in skilled nursing
facilities. HealthStream’s acquisition of Providigm expands its
marketplace of powerful solutions for the healthcare workforce in this
important segment of the care continuum. With substantial overlap among
acute care and skilled nursing facilities’ workforce competency
requirements, the acquisition of Providigm and its SaaS-based products
provides a particularly relevant and timely extension of HealthStream’s
market-leading workforce solutions.
In 2016, the Centers for Medicare & Medicaid Services (CMS) published
revised Requirements of Participation (RoP) in Medicare and
Medicaid for skilled nursing facilities, which introduced a
“competency-based staffing approach.” Requirements for clinical staff
assessments, demonstration of competencies, and competency-based
education (among other requirements) were spread across three phases set
to go into effect in November 2016, November 2017, and November 2019,
respectively. The third phase requires all skilled nursing facilities to
have programs in place to assess competencies, provide competency-based
education, and document their effectiveness. If flagged for substandard
compliance, admissions can be frozen and financial penalties levied. To
date, over 2,000 skilled nursing facilities are already using
Providigm’s abaqis® to achieve better outcomes and compliance
with RoP.
Dr. Andrew Kramer, co-founder and chief executive officer of Providigm,
has led a transformation in measuring and improving quality of care for
frail elders at the bedside. His groundbreaking research at the
University of Colorado, followed by Senate and House testimony, led CMS
to adopt more reliable and comprehensive approaches to overseeing
post-acute and long-term care.
“Helping eldercare providers deliver improved quality of care has been
my passion for decades,” said Dr. Andrew Kramer, CEO, Providigm. “The
link between delivering quality care and the competency development /
training of those eldercare providers is unequivocal. That’s why I
believe HealthStream’s acquisition of Providigm is particularly
opportune—as they have the resources, knowledge, and technology to
advance our solutions to the next level, helping providers achieve the
best outcomes.”
Providigm’s operations will continue in its Denver office, along with
the continued contributions of their approximately 45 employees. Clients
of Providigm will continue to experience continuity of services and the
same outstanding customer service they have grown to appreciate over the
years from Providigm.
“I would like to extend a warm welcome to Providigm’s clients and
employees that will be joining HealthStream,” said Robert A. Frist, Jr.,
chief executive officer, HealthStream. “We are excited to expand our
workforce solutions to further support the continuum of care,
particularly among the nation’s skilled nursing facilities. Providigm is
a terrific company doing important work that is strongly aligned with
our long-standing vision to improve the quality of healthcare by
developing the people that deliver care.”
Terms of the Transaction: HealthStream purchased the outstanding
equity of Providigm for approximately $18 million in cash, subject to a
post-closing working capital adjustment. In addition, up to an
additional $500,000 in cash may be paid following the closing based on
the performance of Providigm during an 18-month period following closing.
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 solutions is contracted by
approximately 4.9 million healthcare employees in the U.S. for workforce
development, training & learning management, talent management,
credentialing, privileging, provider enrollment, performance assessment,
and managing simulation-based education programs. Based in Nashville,
Tennessee, HealthStream has additional offices in Brentwood, Tennessee;
Jericho, New York; Boulder; Colorado; San Diego, California; and
Chicago, Illinois. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190110005688/en/
Source: HealthStream
Mollie Condra, Ph.D.
HealthStream
(615)-301-3237
mollie.condra@healthstream.com
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