HMS Holdings has acquired technology-driven healthcare services company HealthDataInsights (HDI) for approximately $400 million.
According to the press release, the transaction is not contingent upon financing and is expected to close by year’s end, pending regulatory approvals.
HealthDataInsights investor GRP Partners owned a 30 percent stake in the company, blogs partner Mark Suster, who shares more details.
The $400 million HMS is paying for HealthDataInsights will consist of $384 million in cash, paid at closing, and approximately $16 million in consideration in the form of assumption of unvested options.
HDI’s technology ensures claims integrity and is capable of identifying – and recouping – improper payments for health plans and government payers. The company says it has reviewed more than $300 billion in paid claims in 2010 alone.
HDI is the exclusive Medicare Recovery Audit Contractor (RAC) in 17 states and three United States territories (CMS Region D), covering approximately 22 percent of all Medicare claims in the nation.
HDI is projected to contribute approximately $85 million of revenue to HMS in 2012. The company will become a wholly-owned HMS subsidiary and HDI founder and CEO Andrea Benko will join the HMS executive team.
HealthDataInsights employs approximately 400 people located in Las Vegas, Nevada, and facilities in California and Florida.