According to the press release, the transaction is not contingent upon financing and is expected to close by year’s end, pending regulatory approvals.
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.
HealthDataInsights, Inc., a technology-enabled healthcare services company, provides fraud, abuse, and overpayment identification and recoupment solutions for government payors, health plans, and employers. It specializes in the identification and recoupment of claim overpayments to providers, such as hospitals, physicians, DMEs, and other specialty providers. The company offers MyHealthCompass, a Web-based resource that provides quality and financial information on providers to healthcare consumers; Financial Compass Plus, a database and software solution, which supplies financial, operational, and productivity measures; and Clinical...