NASHVILLE, Tenn.--(BUSINESS WIRE)--
HealthStream, Inc. (NASDAQ: HSTM), a leading provider of learning,
research, and talent management solutions for the healthcare industry,
today announced that its talent management strategy has been advanced
with an innovative credentialing application gained through the
acquisition of Sy.Med Development, Inc. ("Sy.Med"). As a leading
developer of credentialing related software products, Sy.Med serves a
broad set of healthcare clients, which includes over 115 hospitals and
integrated delivery networks — their fastest growing market segment.
Sy.Med OneApp™, Sy.Med's credentialing application, centralizes data and
automates the paper-intensive, time-consuming credentialing management
processes for hospitals, physician practices, clinics, and other
healthcare organizations. Hospitals and health systems are required to
manage and track all credentialing applications and enrollment forms for
physicians, nurse practitioners, physical therapists, and other
professional healthcare providers practicing in their organizations. By
adding Sy.Med OneApp™ to HealthStream's talent management product suite,
a powerful credentialing application is provided to hospitals to reduce
credentialing paperwork and manual processes by up to 70 percent.
"HealthStream's innovative, fresh approach to talent management is
rapidly evolving into the healthcare industry's premier talent
ecosystem, of which I am excited to now be a part," said Jim Aylward,
chief executive officer, Sy.Med. "I believe our credentialing
application has saved tremendous resources for our clients — and I am,
therefore, pleased that it will reach a wider audience as part of
HealthStream. Moreover, I know that our clients will benefit from
expanded opportunities as part of HealthStream's growing customer base
while continuing to receive outstanding support and service from the
same Sy.Med team."
Credentialing is a particularly important component of talent management
in healthcare organizations. HealthStream's approach to talent
management begins with evaluating a healthcare organization's workforce
along five dimensions: qualifications, competency, engagement,
performance, and development. Credentialing is, necessarily, an
important starting point as it is essential that healthcare
professionals' qualifications to deliver patient care be verified. As
such, Sy.Med's credentialing application provides a requisite tool to
automate this process — particularly for the credentialing of physicians
who comprise about 80 percent of Sy.Med's client data — and who are
increasingly employed by hospitals.
Credentialing is also a financial imperative. Managed care organizations
— including Medicare and Medicaid — require comprehensive credentialing
processes to ensure that physicians and other professional healthcare
providers meet all of the necessary requirements and are appropriately
qualified to practice medicine and deliver patient care. This process
typically starts with verification of education and residency or
fellowships; appropriate state licensure; employment history;
malpractice carriers' check; a criminal and financial background check;
and reference checks. This data is collected via primary source
verification services (which is not part of Sy.Med) and is then sent to
healthcare providers (e.g. hospital, physician practice, or clinic) who
are responsible for all tasks associated with data management,
enrollment, tracking, privileging, and credentialing. Sy.Med OneApp™,
Sy.Med's application, dramatically reduces the administrative burden of
these tasks — and has added capabilities to centralize provider data,
set automatic expiration alerts, produce a wide variety of reports
on-demand, manage documents, and utilize a large population of letters
and forms.
Sy.Med OneApp™ is available as an installed product and as a
software-as-a-service (SaaS) product delivered through the Internet.
While the majority of Sy.Med clients currently utilize the installed
product, HealthStream will bring a renewed emphasis on integrating,
developing, and deploying the SaaS-based application. Sy.Med OneApp™
enables healthcare organizations to meet NCQA (National Committee for
Quality Assurance), the Joint Commission, and URAC (Utilization Review
Accreditation Commission) accrediting standards for provider information
management in credentialing activities.
"I would like to extend a warm welcome to Sy.Med's clients and employees
to HealthStream," said Robert A. Frist, Jr., chief executive officer,
HealthStream. "We look forward to offering this important credentialing
application to healthcare organizations as we continue to add products
and capabilities to our innovative talent management suite."
Terms of the Transaction:
HealthStream purchased all of the shares of Sy.Med for approximately
$7,050,000 in cash consideration and 34,060 shares of HealthStream's
common stock. Up to an additional $1,500,000 in cash will be paid over a
two-year period following closing, subject to the achievement of certain
milestones post-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 software-as-a-service (SaaS)
solutions are used by, collectively, approximately 2.9 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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