Acquisition adds patented, electronic portfolio for healthcare
professionals
NASHVILLE, Tenn.--(BUSINESS WIRE)--
HealthStream, Inc. (NASDAQ: HSTM), a leading provider of learning and
research solutions for the healthcare industry, today announced that it
has acquired Decision Critical, Inc., an Austin, Texas based company
that specializes in learning and competency management products for
acute-care hospitals. Through the acquisition, HealthStream adds a
patented technology to its suite of innovative software-as-a-service
(SaaS) based solutions as well as a customer base committed to advancing
the development of their workforce.
"At HealthStream, we are passionate about developing the best possible
products and capabilities to measure, manage, and develop hospitals'
workforces," said Robert A Frist, Jr., chairman and chief executive
officer, HealthStream. "Having recently launched the HealthStream
Performance Center™ and SimCenter™, we are continuing to add products
and capabilities to our innovative talent management suite through the
acquisition of Decision Critical."
Added to HealthStream's talent management product suite is Critical
Portfolio™, a patented electronic portfolio, which is an ideal SaaS
based tool to store and view the qualifications, competencies, and
skills of the hospital's workforce, including their licenses,
educational records, and credentials. Individual employees can maintain
their individual profile, while hospital managers can access and use
portfolio data for meeting regulatory reporting requirements or talent
management needs such as succession planning and career ladder
development. For HealthStream's customer base, which represents over
half of the nation's acute-care hospitals, we believe Critical Portfolio
will be a valuable add-on platform extension to our talent management
suite of products.
For hospitals seeking and maintaining the Magnet™ designation, Critical
Portfolio provides powerful capabilities. The Magnet Recognition
Program® of the American Nurses Credentialing Center (ANCC) formally
acknowledges healthcare organizations that epitomize nursing excellence.
The extensive application process includes, among many other
requirements, a comprehensive reporting of the qualifications and
expertise of nursing personnel—including the ability to satisfy specific
Magnet-required reporting.
We believe Critical Portfolio will support the approximately 400 current
Magnet healthcare organizations—which include 237 that are currently
HealthStream customers—that seek to maintain their status through their
annual re-designation process, as well as those organizations that
choose to initially embark on the prestigious Magnet journey.
"I would like to welcome Decision Critical's customers and employees to
HealthStream. We look forward to further investing in the products and
capabilities from Decision Critical as we continue to develop our
innovative talent management suite for our hospital customers," said
Robert A. Frist, Jr. chairman and chief executive officer, HealthStream.
Additional capabilities delivered to customers by Decision Critical
include learning management, skills checklists, and evaluation tools.
Customers of Decision Critical will experience continuity of the
excellent service and support they have historically received.
HealthStream's robust customer service and account management teams will
be available to these customers. As part of HealthStream, customers of
Decision Critical will also now have access to an expanded array of
platform products, such as the HealthStream Competency Center,
HealthStream Performance Center, SimCenter, and Insights Surveys, along
with content offerings from world-class providers, such as Laerdal
Medical, Lippincott Williams & Wilkins, and Precyse Solutions.
Kenneth ("Ken") W. Dion, Ph.D., MSN/MBA, RN, the founder and chief
executive officer of Decision Critical, will join HealthStream as vice
president, nursing informatics. With over 30 years of service in
healthcare, Ken is an experienced industry thought leader in the areas
of informatics, performance, and competency management. He currently
sits on the Board of Trustees of the Foundation of the National Student
Nurses' Association where he serves as president and the Foundation
Board of the International Nursing Honor Society, Sigma Theta Tau.
"Our products have proven to be of significant benefit to many
hospitals. Critical Portfolio has been particularly popular with the
outstanding hospitals that have achieved Magnet designation as well as
those on the Magnet journey. I am, therefore, delighted to join forces
with HealthStream, an industry leader, to combine this solution with
HealthStream's innovative product suite for talent management and
thereby enriching the offering to the largest online hospital community
of its type," said Mr. Dion.
Terms of the Transaction:
HealthStream has purchased all of the shares of Decision Critical for up
to approximately $4.3 million, which includes $3.5 million of cash
consideration, 22,124 shares of HealthStream's common stock and a
contingent payment of $300,000 based on the achievement of certain
milestones post-closing.
HealthStream does not anticipate the acquisition of Decision Critical to
have a material financial impact on full-year 2012 results.
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 are used by, collectively, approximately 2.8 million
healthcare employees in the U.S. for 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, engage their
workforce, and enhance physician alignment. Based in Nashville,
Tennessee, HealthStream has an additional office in Laurel, Maryland.
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, or in the future may be, 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. The Company's preliminary financial results, while presented
with numerical specificity, are forward-looking statements which are
based on a variety of assumptions regarding the Company's operating
performance that may not be realized, and which are subject to
significant uncertainties and potential contingencies associated with
the Company's financial and accounting procedures and other matters
referenced from time to time in the Company's filings with the
Securities and Exchange Commission. Consequently, such forward-looking
information should not be regarded as a representation or warranty by
the Company that such projections will be realized.
HealthStream, Inc.
Mollie Condra, Ph.D., 615-301-3237
Associate
Vice President, Investor Relations & Communications
Mollie.condra@healthstream.com
Source: HealthStream, Inc.
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